Norris McDonald | American AI, China’s DeepSeek and the economic art of war

CHINA’S DEEPSEEK Artificial Intelligence (AI) launch is sending shockwaves throughout global markets and the US is finally starting to notice. This isn’t just another tech breakthrough; it’s a signal to the US that the global leadership in AI might soon belong to Beijing. Investors are spooked – witness the US$1 trillion wipeout on Wall Street, a direct response to China’s latest move.

AI introduces the capacity for machine learning in science and technology to take on formidable task that normally would require human intelligence.

It has its upside and downside. On the one hand it can and has led to people being replaced by machines but, on the other side of the coin, it can help to accelerate economic development.

China’s launch of DeepSeek became a shocker when it ought not to have been so. Americas have lulled themselves into believing that no other country can ever surpass them. This is their idea of “American exceptionalism”.

DeepSeek’s capabilities are far more than a flashy gimmick. It has showed the world that the age of American global technological dominance is coming to an end. This is serious business, and China’s calculated push into AI is already undermining US supremacy.

US PROTECTIONISM AND DECLINING LEADERSHIP

America’s once-untouchable dominance in technology is crumbling. For years they have pushed a protectionist frenzy that, ironically, is stifling the very innovation it claims to champion.

The CHIPS Act, with its US$39 billion, is a prime example of misguided short-term thinking. Rather than fostering innovation, it’s an attempt to stem the tide of technological decline with temporary fixes.

But this isn’t just about one piece of legislation – it’s part of a larger, disastrous trend. President Trump’s so-called planned US$500 billion giveaway to American tech companies reeks of the same crooked, corporate cronyism as Biden CHIPS Act.

It’s as if the US believes throwing money at bloated corporations is the magic cure for its ailing tech sector. The truth is, this is just gimmick, since America, with its failing economy, run-down cities, collapsing bridges, roads and railroad network, cannot find this money even if it wanted to do so.

WHY THE HYPE THEN?

Protectionism and delusional hypes are perhaps what American political leaders need to keep the suffering poor people and the middle class on a leash.

Protectionism might offer some relief in the short run, but it’s not a sustainable answer. President Trump is now telling Americans that “some pain may lie ahead!”

Oh yea! Wasn’t tariffs and the protectionist con game going to ‘make America great again?’

China, meanwhile, is positioning itself as the long-term technological powerhouse – no shortcuts, no quick fixes – just steady, strategic investments. America’s self-imposed walls are turning its once-great technological prowess into an illusion.

CHALLENGES IN US EDUCATION AND INFRASTRUCTURE

Want to know why the US is in decline? Just look at its education system. Once the envy of the world, the US now has an educational crisis of epic proportions. High school graduation rates are in freefall, and college enrolment is plummeting. The numbers don’t lie: US colleges enrolled 18.1 million students in 2010; by 2023, that number dropped to 15.8 million. At the same time, enrolment in two-year colleges fell by 38 per cent between 2010 and 2021.

Without a robust STEM education pipeline, how does the US expect to develop the next generation of innovators? How will it remain competitive in a world where technological prowess is the most valuable currency? The answer is simple: It won’t. The US can’t compete with China’s tech giants when its own workforce is growing more unprepared with every passing year.

And the crumbling infrastructure? It’s another nail in the coffin. While China builds high-speed rail systems and modernises its cities, the US is stuck trying to patch up roads and outdated public transportation.

The lack of investment in infrastructure is a direct reflection of a broader failure. There is a complete lack of vision and strategic planning for long-term economic growth. Expansion in computer generation means there will be a further rise in demand in electrical power. And there is no plan to expand America’s power grid.

CHINA’S STRATEGIC INVESTMENTS

Meanwhile, the Chinese government has made a deliberate, long-term commitment to position itself as the dominant force in both technology and global markets.

China’s success isn’t a fluke. It’s the result of a strategic vision that prioritises education, technology, and infrastructure development. Compare that with America’s reactionary policies – tariffs, subsidies, and band-aid solutions – that do nothing to address the underlying rot in its system.

The US might still be a dominant player, but it’s increasingly looking like a relic of the past, trying to fend off a rapidly modernising China.

THE ECONOMIC ART OF WAR:

This entire debacle can be understood through the lens of Sun Tzu’s Art of War, which teaches us that the best strategy is one of patience and subtlety. China has embodied this philosophy to perfection.

While the US lurches from one short-term fix to another, China quietly builds its technological empire with careful, strategic investments in AI, infrastructure, and education. Every step is calculated, deliberate, and designed for long-term success.

China’s rise is a wake-up call for America to re-tool her industries and stop blaming others for its self-made economic woes.

The rise of China is not a myth – it’s the undeniable truth. And if the US doesn’t act now, it will find itself increasingly irrelevant on the world stage.

China has figured out what the US refuses to acknowledge: it’s not about throwing money at short-term solutions. It’s about investing in people, infrastructure, and the future.

The US political ruling class must stop selling out their voters and, the country, to billionaires. America must spend money on her people and infrastructure and not on fat cat billionaires.

That is just the ‘bitta’ truth!

Norris McDonald is an economic journalist, political analyst, and respiratory therapist. Email feedback to columns@gleanerjm.com and miaminorris@yahoo.com