Manifold Seeking Truth From Facts: AI, China, Tariffs, Geopolitics — #84
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Apr 24, 2025 The discussion kicks off with breakthroughs in China's AI landscape, spotlighting DeepSeek's cost-effective innovations. It dives into China's strategic shift from finance to STEM, offering lessons for the West. Meritocracy in China is examined, revealing intriguing policies that influence elite graduates. The impact of Trump's tariffs is scrutinized, alongside the evolving dynamics between Europe, the U.S., and China. Historical perspectives, including Confucian influences on Western governance, enrich the conversation, highlighting complex geopolitical realities.
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Chinese AI Near Western Parity
- DeepSeek and other Chinese labs are almost on par with leading Western AI labs, closing the perceived gap significantly.
- China's AI progress surprised many Western observers, showing strong domestic capability in AI development.
China's Finance Crackdown Effects
- China's crackdown on speculative finance capped trader compensation to curb excesses, arguably steering talent to other fields.
- Yet DeepSeek's success likely depends on unique founder qualities rather than government policy alone.
Tax Policy Can Redirect Talent
- Closing hedge fund tax loopholes could reduce the lure of finance for top talent in the US.
- Adjusting tax incentives may help redirect brainpower towards more positive-sum areas like science and engineering.