Bloomberg Surveillance · Tuesday, September 8, 2026
Peter Scheer of Academy Securities expressed concern over China's rapid advancements in compute power and data centers, noting they are still behind the U.S. but are flooding the market with cheap compute, potentially hurting U.S. markets. He also highlighted China's leverage with rare earths and critical minerals as a significant economic threat.
“All of this still comes down to, is the data center AI build as good as it is, and how quick is Chinese compute catching up? I'm a little bit nervous that Chinese compute is is amping up. There's been a little bit of noise in China about rare earths and critical minerals. I think they still hold the biggest card.”
“So when Trump sits down with Xi, they have been working really hard to catch up on compute and data centers. They're still way behind us, but they are flooding our market with cheap compute, which could hurt our markets. And they do have that threat of rare earths and critical minerals, which could drive our economy to a standstill.”