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Sixteen years on the streets, living and working with the people of China, Jeff
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Note before starting: to give you an idea what the West is up against, China just released a $4,999 pilotless, flying car! Ford, Tesla, BMW, Mercedes? Hah!
https://youtu.be/tbUJ2uC4sa8?feature=shared
Article
Note: the two lists of Western and Chinese companies are at the end of this article.
As you have probably read in the last month or so, a young startup company in China called DeepSeek put out its free AI program and code for the whole world’s benefit. POOF! The West’s dreams of monopolizing AI and charging humanity through the nose for it, trillions of anticipated dollars just went up in Sino-smoke. Not only DeepSeek, but many other Chinese AI companies are also releasing their platforms and code for all of the world for free, which again, has turned Silicon Valley AI into a financial graveyard. The imperial West has no answer for China’s relentless onslaught except boycotts, divestment, sanctions and tariffs.
Who are the West’s tech giants? You’ve got Alphabet/Google, you have Amazon, you have Apple, you have Intel, you have Meta, you have Microsoft, you have Nvidia and you have Tesla. For decades, they have been called “The Magnificent Eight”. Not anymore.
Only eight. Western tech is highly concentrated in a monopolistic group of eight companies. Western capitalism encourages consolidation and monopoly markets. Look at China’s list below. In China’s corner, you have many more companies covering a broader range of high-tech. The list is over twice as long. Baba Beijing insists on keeping it that way, to make sure there is lots of competition in Sino-Tech World. In the Western list below, look at the dates of their founding. Alphabet/Google was started in 1998; Amazon, 1994; Apple, 1976; Intel, 1968; Meta, 2004; Microsoft, 1975; Nvidia, 1993; and Tesla, 2003. So out of the West’s Big Eight – essentially the United States – only two of them were started after the year 2000. This is worrying for Western Tech, because these are mostly mature, legacy companies, which over time, once they get market share, quickly get fat and lazy.
Along with these behemoths from China, hundreds of other smaller Sino-tech companies are nipping at these big boys’ heels and Baba Beijing wants them in the arena to catalyze competition, innovation and invention. When you go through the list, you can see one company that could be called legacy, Huawei, which was founded in 1987. Yet, to be honest, it didn’t come out with its first smartphone until 2004. For the first fifteen years, they produced basic 3G-4G telecommunication equipment and nothing else.
When you go down through the Sino-list, you see ByteDance, founded in 2012, has completely overwhelmed Western social media with TikTok. Trump can try to crush it, but look out! Millions of Westerners are signing up with Red Note, one of China’s smaller social media companies, among dozens. Then you have DeepSeek, which was only started in 2023 and has completely upended global tech. DJI started in 2006 and has about 70% of the civilian global drone market. Companies like Tencent and NetEase were founded in the 1990s and are massive video game producers. In fact, Tencent is the world’s biggest game publisher. Their competition is Sony (1946), Microsoft (1975) and Nintendo (1889), again mature, legacy companies.
In China’s corner, Unitree is only nine years old and it is already the world’s top humanoid robot maker. It’s bigger, better, faster, and cheaper than anything that the United States can come up with, including Boston Dynamics, which was started in 1992. I suspect Boston Dynamics got complacent, thinking they would always be the global big dog. Not anymore. Then, you have companies like Huawei and Xiaomi, that were in the phone business. Now, they are into electric and driverless cars, computers/electronics, artificial intelligence, personal and business software and cloud computing. Alibaba, Baidu, Tencent and many others are massively moving into cloud computing and the competition is fierce, which is what Baba Beijing wants. Not just China’s Tech Titans, but many other second-tiers are going horizontal into various high-tech sectors. Baba Beijing wants as much competition as possible.
Western Tech is now paying the price for being complacent and monopolistic. They forgot to look over their shoulders across the Pacific. Some of it is steeped in Sinophobia. The Chinese are not innovators, just copycats, right (http://radiosinoland.com/2015/04/23/chinese-havent-invented-anything-last-600-years-44-days-radio-sinoland-2015-4-23/ AND http://radiosinoland.com/2018/03/20/china-tech-invention-innovation-technology-research-and-development-past-present-future-5000-years-of-progress-a-china-rising-radio-sinoland-living-document/)? That kind of imperial ignorance of history, racism and hubris is now biting the West in the butt big time. For the Chinese, innovation and invention haven’t stopped for 5,000 years and today, the sky’s the limit. China is now the number two unicorn business market. With China’s unbridled tech success and deep pockets, how long will it be before it overtakes the United States? Sooner than you think.
The other aspect that no one wants to talk about is, of course, that the West’s Magnificent Eight are all very beholden to the Mossad-CIA-MI6 matrix. In fact, Google and Facebook are US military creations. Mark Zuckerberg, Larry Page and Sergey Brin are just Master Race figurehead puppets, nothing more. They are handed their scripts and they read them. When you are captured by psychopathic Mossad-CIA-MI6, this totally skews priorities and limits what you can and can’t do.
That is absolutely not true for China. The Ministry of State Security (MSS) has minimal influence in the high-tech sectors, other than making sure foreigners are not stealing technology. Not having an MSS millstone around their necks gives China Tech much more freedom to innovate and take risks. To keep it that way, Baba Beijing keeps passing laws, regulations, etcetera to rein in Big Tech companies, national and international (https://radiosinoland.com/2024/04/13/baba-beijing-is-on-the-war-path-to-make-banks-finance-big-tech-and-social-media-serve-the-people-and-better-their-lives-the-west-not-china-rising-radio-sinoland-2404012/). This helps make sure they don’t end up like Google, Facebook & Co. controlling governments and having outsized, undue influence on the people’s economy, which the latter do. In China, it’s Baba Beijing that shouts “frog” to the tech companies and they dutifully jump. In the West, it is the exact opposite.
Another weakness of the big Western tech companies is they have spent the last twenty-five years buying out smaller companies instead of innovating. Meta bought Instagram, WhatsApp and a hundred others. Google scooped up YouTube, Motorola and 260 others. Microsoft grabbed Skype, LinkedIn and 222 other companies. China Tech buys companies too, but on a much smaller scale: Baidu, 22; Alibaba, 25; and Tencent, 42. This famous trio, known as BAT has only acquired 89 companies between them! You can bet your sweet bippy they call Baba Beijing first to get the OK, since the government wants to keep all the tech sectors broad and horizontal, to avoid vertical concentration, not to mention making sure they do not get too big for their britches. Vertical concentration always leads to what has happened in the West: monopoly markets and fixed prices. This is the death knell of invention and innovation.
A good example is I’m forced to use Microsoft’s Office 365 because there’s no real competition for my needs. There’s Apple’s iWork and Google Workspace, both of which I hate just as much as Microsoft. Do these company names sound familiar? It’s like choosing between Satan, Lucifer and Beelzebub. After using Microsoft for 40 years, it’s challenging to make the change. To avoid this trap, China is encouraging many different office applications, including from Australia, Britain, Bulgaria, Estonia and Russia, not just three, and they are all competing ferociously for the Sino-business (https://sourceforge.net/software/word-processors/china/).
In closing, capitalism’s inevitable monopolies and fixed prices, combined with Sinophobic hubris and ignorance of China’s relentless millennial invention and innovation, has seriously checkmated the West’s once Magnificent Eight. They royally deserve to be smoked by China’s communist-socialist Tech Titans.
I can’t wait until Huawei rolls out with its operating system for the international market. Then I can dump Microsoft, once and for all!
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JEFF J. BROWN, Editor, China Rising, and Senior Editor & China Correspondent, Dispatch from Beijing, The Greanville Post
Jeff J. Brown is a geopolitical analyst, journalist, lecturer and the author of The China Trilogy. It consists of 44 Days Backpacking in China – The Middle Kingdom in the 21st Century, with the United States, Europe and the Fate of the World in Its Looking Glass (2013); Punto Press released China Rising – Capitalist Roads, Socialist Destinations (2016); and BIG Red Book on China (2020). As well, he published a textbook, Doctor WriteRead’s Treasure Trove to Great English (2015). Jeff is a Senior Editor & China Correspondent for The Greanville Post, where he keeps a column, Dispatch from Beijing and is a Global Opinion Leader at 21st Century. He also writes a column for The Saker, called the Moscow-Beijing Express. Jeff writes, interviews and podcasts on his own program, China Rising Radio Sinoland, which is also available on YouTube, Stitcher Radio, iTunes, Ivoox and RUvid. Guests have included Ramsey Clark, James Bradley, Moti Nissani, Godfree Roberts, Hiroyuki Hamada, The Saker and many others. [/su_spoiler]
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