The Chinese AI Economy
This Week In Business AI [Week #7-2026]
China’s AI economy operates on fundamentally different principles from the US model.
While US AI is characterized by frontier-model competition between a handful of well-funded labs, China has built a parallel system optimized for deployment velocity, ecosystem integration, and infrastructure-native AI that embeds directly into commerce, services, and industrial applications.
The performance gap has narrowed from over a year to under three months, but the strategic divergence is widening.
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The weekly newsletter is in the spirit of what it means to be a Business Engineer:
We always want to ask three core questions:
What’s the shape of the underlying technology that connects the value prop to its product?
What’s the shape of the underlying business that connects the value prop to its distribution?
How does the business survive in the short term while adhering to its long-term vision through transitional business modeling and market dynamics?
These non-linear analyses aim to isolate the short-term buzz and noise, identify the signal, and ensure that the short-term and the long-term can be reconciled.
