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