China Is Impressive But Not Invincible

I came across a fascinating article last night. It was an interview with Jensen Huang. He started his work life working at a Denny's Restaurant. He took a giant risk and started NVIDIA. It is one of the giants in the technology industry. He quipped jokingly that China could build a data center in a weekend, whereas it often took three years to build the same data center in the US: Jensen Huang, CEO of NVIDIA, recently highlighted stark differences in infrastructure development speeds between the US and China as a potential risk to America's lead in the AI race. In a late November 2025 speech at the Center for Strategic and International Studies (CSIS), he stated: "If you want to build a data center here in the United States, from breaking ground to standing up an AI supercomputer is probably about three years." He contrasted this with China's rapid pace, adding: "They can build a hospital in a weekend." Key Context and Implications The Comparison: Huang used the hospital example to illustrate China's manufacturing and construction efficiency, driven by lighter regulations, cheaper energy, and a centralized approach to scaling infrastructure. While he didn't explicitly say China builds data centers in a weekend, the analogy underscores how quickly China could deploy AI-enabling facilities compared to the US's multi-year timelines, which are bogged down by permitting, environmental reviews, and supply chain issues. Energy Factor: Huang pointed out that China generates twice as much electricity as the US—despite America's larger economy—and its capacity continues to expand rapidly, while US output has remained relatively flat. This gives China an edge in powering energy-intensive AI data centers. Broader AI Race Concerns: Despite NVIDIA's "generations ahead" lead in AI chip technology, Huang warned that fragmented US regulations and infrastructure delays could allow China to close the gap. He emphasized the need for policy reforms to streamline energy and construction processes. Other tech leaders, like Alphabet CEO Sundar Pichai and investor Kevin O'Leary, have echoed these worries, calling for reduced "red tape" to maintain US competitiveness. This statement aligns with ongoing discussions about geopolitical tech tensions, where China's state-backed investments in AI hardware and infrastructure are accelerating, even as US export controls on advanced chips (like those from NVIDIA) aim to slow its progress. Numerous readers have approached me, warning about the great advances that China is making. I agree with them. They even warn that China wants to destroy the US. I am going to take a risk this morning and take a contrarian position. What Chairman Xi would love to have is an agreement with the US whereby we acknowledge China as our peer and equal. We start working with them to influence the whole world. This would never happen with President Trump. If J.D. Vance or one of several serious Democratic candidates became president, this would be a serious possibility. I have also pointed out to these concerned readers some historical parallels as follows: 1) In the early 1970s, the prestigious Hudson Institute predicted that the Soviet Union would overtake the U.S. to become the world's most powerful economy. People took them seriously. Many started to see this as being inevitable. What happened in reality is that the Soviet Union collapsed in 1989. What is left is Russia. It has an economy the size of Italy's and is described as "A gas station with nuclear weapons." 2) In the 1980s, Japan was seen as rising to be the number one economy in the world. People in the US began to dread Japan eclipsing the US to become the most powerful country in the world. The famous fiction author Tom Clancy wrote a best-selling book on this subject. Japan's ascension fizzled out. Today, Japan and the US state of California are often tied for the position of number 4 economy in the world. 3) In the 1300s-the early 1400s, China had the most powerful military machine on earth. It had warships displacing 50,000 tons with weapons technology far ahead of the West. China controlled a lot of the world. We barely missed a situation where China colonized California before Europeans did. Then there was an internal political collapse in China that stopped their progress.