China’s “overcapacity” was always deliberate: US experts stunned by Chinese AI, declare race is over
by Inside China Business [8-20-2025 published].
(RAD: China is using AI everywhere in their industrial sector and they have massive amounts of inexpensive power to more than sustain their rapid growth in AI & manufacturing. In the US, the need for more electric power would grow more that 30X if the new AI data centers are to be built. But the US doesn't even have the necessary supply chain to build needed gas power plants & nuclear power stations take forever to build. The US has a huge power capacity problem that can't even be fixed in time to catch up to where China is right now. Of course, China isn't going to stand still while the US tries to fix these problems.
For decades, China has deliberately built overcapacity at every layer of the power sector, from generation to transmission to next-generation nuclear. Every year, China adds 1 German year of demand & 2 German years of capacity. China consistently maintains at least 2X the electric capacity that it needs, whereas the US struggles to meet current demand. The cost of electricity keeps rising in the US because of limited capacity, whereas it is abundant and inexpensive in China. As a side note from other sources, the cost of electric cars are now less than the cost of gasoline cars in China and much less than in the US & they have solved the battery charging time issues. — RAD)
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