China has the advantage of a focused government that knows it must deliver economic improvement or be removed by force- probably brutal.

China provides the essential inputs for free enterprise to thrive at the deliberately minimised cost- skilled labour, energy, transport, logistics and communications.

For a long time local or regional government have been building energy supply and the factories would then naturally follow in pure free market fashion.

A mixed economy of government led strategy combined with free enterprise incentives...and crucially a minimisation of rentseeking cartels and monopolies.

In China engineering is highly prized (the politburo are mostly trained engineers) and people cheer on each new piece of productive infrastructure...because they understand it is making China great again.

Looking at getting something manufactured? Go to China...they do it faster, cheaper and often of comparable quality.

If the west loses this AI race then China has won and the US empire is fucked. China have already won the mercantile trade war on nearly all levels.

AI s a fiat thing, there will remain only a few that are really profitable.

Thanks for the analysis and taking your time to explain this insights, it's helpful.