Part 3/8:
Critics arguing that the AI investment theme is dead misinterpret both the complexities of the Chinese market and the U.S. system. In the U.S. and Europe, the inability to build low-cost, high-quality products can lead to bans on foreign competition. For instance, Chinese companies can produce cars and medicines far below American prices, yet those products often face restrictions in the West. The focus remains on sustaining business operations and maintaining profit margins, even if it incurs higher costs for domestic consumers. This discrepancy creates a stifling environment for innovation, further perpetuating the cycle of high prices and limited access to emerging technology.