Bloomberg Surveillance · Monday, July 20, 2026
Analysts are concerned about China potentially flooding the market with cheap compute power, reminiscent of the 'China Shock' of the early 2000s with consumer goods. This could slow down domestic AI compute build-out and negatively impact the US economy.
“Is China going to flood our markets like they did with trinkets back in the early two thousands.”
“But the reality is they have the electricity grid, they have enough chips, and they seem to be able to flood the our market.”
“That's my concern is real cheap competition from China circle what we saw back in the two thousands, where they just flood our market and it slows down our built.”