Speaker 1: China has so many power plants that have been built
Speaker 1: and are being built. I don't think people quite realize this.
Speaker 1: I posted on my ex account just the graph of
Speaker 1: US power generation versus China power generation, and China power
Speaker 1: generation is like looks like a rocket going a little
Speaker 1: bit and US power generation is flat. Right. So I
Speaker 1: think by the end of this year, China will have
Speaker 1: about two and a half times the power output of
Speaker 1: the United States, and it's headed towards maybe three or
Speaker 1: four times the power output of the United States.
Speaker 2: It's funny when think about China, I mean evs autonomous.
Speaker 2: We talked about batteries, solar power generation, by the way,
Speaker 2: even biotechnology recently, I don't know if you saw Pfizer's
Speaker 2: licensing cancer drugs. Yeah, they seem to be I don't know.
Speaker 2: I'll ask you the question, are they ahead of us
Speaker 2: in certain areas that are important?
Speaker 1: The United States still has an advantage in breakthrough innovation,
Speaker 1: But so it's the United and I think it's it's
Speaker 1: somewhat of a cultural thing, which is that to have
Speaker 1: breakthrough innovation, you have to question authority that fundamentally, your
Speaker 1: break through, your your You're questioning the conventional wisdom when
Speaker 1: you do a breakthrough innovation, and in China that that
Speaker 1: I don't generally like to question the authority or that's
Speaker 1: that's just that's not it's not as encouraged as it
Speaker 1: is in the US.
Speaker 2: Questioning authority does seem to be good at finding something
Speaker 2: and then making it better.
Speaker 1: Yeah, I just I do what says that the sheer
Speaker 1: number of smart, talented people in UH in China who
Speaker 1: work very hard is amazing that the amount of that's
Speaker 1: just the share quantity of talent. I mean, I'm an
Speaker 1: admirer of of of China's capabilities. I think I think
Speaker 1: most people outside of China do not understand the power
Speaker 1: of China. It really is something something special.
Speaker 3: And I think that's the exact point that a lot
Speaker 3: of a China bulls out there are talking about, and
Speaker 3: this is something they're saying that the Western world doesn't
Speaker 3: really understand the talent factor. And even when it comes
Speaker 3: to AI. He seemed to hesitate a little bit when
Speaker 3: the question from David Favor was really trying to compare
Speaker 3: the US and China when it comes to how embedded
Speaker 3: AI is, and he instead decided to talk about how
Speaker 3: it's difficult for Chinese companies to perhaps say no to
Speaker 3: the authorities because of the cultural difference and so on.
Speaker 3: But I think, you know, with that, I think he
Speaker 3: was trying to insinuate that there is that amazing capabilities
Speaker 3: that he is appreciating about the Chinese economy.
Speaker 4: Yeah, indeed, we'll get more about I we'll talk more
Speaker 4: about Chinese just a bit. But you know, the US
Speaker 4: side of it and the energy. I mean, the fact
Speaker 4: of the matter is the US is finally now energy independent.
Speaker 3: Right.
Speaker 4: The resources are there, right, they're net exporters of energy, right,
Speaker 4: It's more the ability to convert that energy, whether it's
Speaker 4: oil or shale or whatever, or net gas right into
Speaker 4: power and electricity. I think that's where the US is
Speaker 4: clearly falling short of China. And China, as we all know,
Speaker 4: is leading the world in renewable energy right whin hydro solar,
Speaker 4: et cetera, and also building a heck of a lot
Speaker 4: of nuclear plants. But on to the point about you know,
Speaker 4: Musk saying that, you know, yeah, they're cracking out a
Speaker 4: lot of degree holders, and you know, filing a lot
Speaker 4: of scientific patents, and there's just so many smart people,
Speaker 4: so much gray matter in China. But you know, innovation
Speaker 4: has its limits when you're in a system where you
Speaker 4: can't buck authority. I want to push back on that
Speaker 4: because what a lot of people say is, you know,
Speaker 4: even in that kind of top down communist system, right,
Speaker 4: there's a lot of decentralization. Right, she's in pain and
Speaker 4: the Paul Beer may say whatever they want, right, but
Speaker 4: it's going to be down to the provinces to actually execute.
Speaker 4: I think that's where as we saw it with EV's
Speaker 4: and we're likely to see with AI as well, they
Speaker 4: pretty much made their own decisions. In fact, historically that's
Speaker 4: been one of the biggest problems for the central government
Speaker 4: controlling the provinces.
Speaker 3: I think the question boils down to when the control
Speaker 3: is exercise. So I think over the past years and
Speaker 3: EV is a good example of that, and that this
Speaker 3: is actually the point that Louis Vincent gov was talking
Speaker 3: about on our air just a few weeks ago, that
Speaker 3: they let them go the private companies to do your thing,
Speaker 3: figure it out, and we will let you innovate. At
Speaker 3: some point the central government would come in and say, okay,
Speaker 3: so there are too many of you, perhaps you can
Speaker 3: consolidate with A and B and the CND, and then
Speaker 3: we have actually a very powerful influence in this particular
Speaker 3: sector that has been the China playbook. And perhaps that's
Speaker 3: what's been happening, not just evs but in other sects.
Speaker 4: And I tell you what, you know, there's nothing that
Speaker 4: generates innovation and new ideas than that kind of competition.
Speaker 4: It is brutal, it is cut through it, and you're right,
Speaker 4: you know. There are times when the Chinese government steps
Speaker 4: in and says, okay, look this is messy, inefficient, Look
Speaker 4: you merged with you merged with you. Other times the
Speaker 4: Chinese government just stands aside and goes, okay, so you
Speaker 4: didn't make it. You failed too bad. Right, they're waiting,
Speaker 4: they're letting these guys fight it out, and they're waiting
Speaker 4: to see, okay, so who's got what it takes to
Speaker 4: make it? And ah, okay, so you did despite all
Speaker 4: the challenges. So all right, you deserve to be a champ.
Speaker 3: Backly, so, Louis gov was talking about how because it's
Speaker 3: a communist system that it's not going to work economically.
Speaker 3: That is the misconception that he wanted to point out,
Speaker 3: And maybe that is really the thing that we're going
Speaker 3: on about I do want to have a line on
Speaker 3: power transformer. Sorry, because Elon Musk was talking, I thought
Speaker 3: it was really cute when he was saying the transformers
Speaker 3: needing transformers for transformers, power transformers. The top exporting, top
Speaker 3: exporting countries to the United States, Get this, Mexico. That
Speaker 3: was a surprise to me. South Korea, China, and Germany. Yeah,
Speaker 3: who is at an advantage. I think it's very interesting
Speaker 3: to look at this massive rally that we've been seeing
Speaker 3: in South Korea's power transformer sector. They had a massive
Speaker 3: rally on the US export story. Does this continue with
Speaker 3: Elon Musk himself talking about how there is that shortage
Speaker 3: coming up?
Speaker 4: Don't know, watch this space exactly all right,