I see many people commenting that the US is trying to pull a reverse Kissinger, wooing Russia away from China, completely missing the obvious truth right before their eyes: if there's a split happening, it's a Euro-US split.
That's a common flaw in human nature, we're often incapable to conceive that the status quo we've lived with our entire lives has fundamentally changed. We look to patterns from the past, seek to refight the previous war; it's far easier and more comforting to believe you're still in the box even when the box has disappeared.
Russia isn't going to split again from China, there is not a single chance in hell, it learned that lesson the hard way... Putin, as a famously keen student of history, understands how much damage that did.
And why would he? What benefit would Russia possibly derive from this? The world has changed: as we've seen during the Ukraine war the West unleashed its entire economic arsenal against Russia, only to demonstrate its own impotence. Russia last year was Europe's fastest-growing economy even when completely cut off from Western markets. So if the West's maximum pressure amounts to so little, its maximum friendship isn't worth much more.
It's utterly delusional to think that the two torch bearers of the Global South would split just as the emergence of the long sought multipolar order is finally coming true, all in exchange for a return of Western trade which they now know is dispensable, and an end to sanctions which they now know don't hurt much.
Also, kind reminder that Kissinger didn't actually split Russia and China: he took advantage of an already existing split. Geopolitically speaking, it's incredibly hard to split powers - especially great powers, but it's much easier to leverage an existing split. And looking at the landscape, those that are already split - or rather splitting - aren't Russia and China, but very much the U.S. and Europe.
A Euro-US split was bound to happen sooner or later, as the cost of the alliance increasingly outweighed the benefits on both sides. Especially with the rise of the Global South, China in particular, which initiated a profound identity crisis: suddenly you had countries "not like us" being far more successful, taking over an unsurmountable lead in manufacturing, and increasingly science and technology.
At some point there are three choices in front of you: join them, beat them, or isolate yourself from them and slowly decay into irrelevance. The West has been trying the "beat them" approach for the better part of the past 10 years and we've seen the results: an increasingly desperate series of failed strategies that only accelerated Western decline while strengthening the very powers they meant to weaken.
It also tried the "isolate yourself" approach with the various plans of "friend-shoring", "de-risking", "small yard, high fence", etc. That wasn't much more successful and the West undoubtedly sees the writing on the wall: the more you isolate yourself from a more dynamic economy, the further behind you get.
This leaves us with "join them", and here Trump's calculation seems to be that if the U.S. does so first, it undoubtedly can negotiate much better terms for the U.S., much like China did with Kissinger back in the late 1970s when it joined what was at the time still the U.S.-led international order. With Europe, like the Soviet Union back then, left with no choice but to accept whatever crumbs remain.
The situation of course isn't exactly similar. We're outside the box, remember... For one the U.S. isn't remotely in the same conditions as those of China back then and, unlike the Soviet Union, Europe lacks both the military might to resist this new arrangement and the economic autonomy to chart its own course. Which means that in many ways, geopolitically speaking, the U.S. is in better conditions and with more leverage than China had (and therefore able to get itself a better deal), and the EU ends up in worse conditions than the Soviets.
Still, the fundamental reality remains that Trump, for all his faults, seems to have understood earlier than Europeans that the world has changed and he'd better be the first to adapt. This was clear from Rubio's very first major interview in his new role as Secretary of State when he declared that we're now in a multipolar world with "multi-great powers in different parts of the planet" (state.gov/secretary-marc…).
As a European though, I can only despair at the incompetence and naivety of our leaders who didn't see this coming and didn't adapt first, despite all the opportunities and incentives to do so. They foolishly preferred to cling to their role as America's junior partner, even as that partnership was increasingly against their own interests, something which I've personally warned about for years.
Turns out, strangely, that the Europeans were in fact in many ways more hubristic and more trapped in the delusions of Western supremacy than the Americans. The price for this hubris will be very steep, because instead of proactively shaping their role in the emerging multipolar order, they will now have to accept whatever terms are decided for them.
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This could potentially be quite transformational for peace in Ukraine and for Europe generally: welt.de/politik/auslan…
German newspaper Welt Am Sonntag, citing "EU diplomatic sources familiar with the matter", reports that "China proposed to the EU to participate in the 'Coalition of the Willing'" so as to "increase Russia's acceptance of peacekeeping forces in Ukraine."
Russia has so far vehemently rejected the idea of European peacekeeping troops in Ukraine but could indeed potentially be swayed if China were to be part of the coalition.
Such a move would also of course have the potential to fundamentally change the nature of EU-China relations and mark a huge shift in the continent's security architecture, where China would be an alternative security partner to the US in European affairs.
It would also strategically position Europe in a much more enviable position were it wouldn't be at the mercy of Washington's every whims, and could leverage competition between Beijing and Washington in a way that'd enhance its sovereignty and bargaining position.
All that being said, given the EU's proven history of diplomatic incompetence and strategic inertia, this scenario is more likely than not to remain theoretical.
Some people reply that this could be fake news because this is inconsistent with China's historical position BUT it isn't: China was already one of the guarantor states in the 2022 draft "Treaty on Permanent Neutrality and Security Guarantees for Ukraine" negotiated in Istanbul (see screenshot, from here static01.nyt.com/newsgraphics/d…).
2022 treaty on which Lavrov said a peace deal must be based ("Our approach to the potential settlement has not changed: we are ready for dialogue on the basis of the 2022 agreements", mid.ru/en/foreign_pol…) 🤷
Retired PLA Senior Colonel Zhou Bo had also recently said on the sidelines of the Munich Security Conference that "China could also be part of security guarantees, alongside other powers," depending on the conditions. scmp.com/news/china/dip…
This "China is depleting the oceans with its huge fishing fleets" story is yet another utterly shameless piece of propaganda when China actually proportionally fishes much less than the rest of the world, since - unlike others - it gets the immense majority of its fish supply from aquaculture 👇 (src: openknowledge.fao.org/items/06690fd0…)
The worst culprit when it comes to depleting the oceans is actually Europe, relative to its population size. They fish about 33kg of fish per person per year compared with 10kg for China, a crazy 230% more!
Actually if you read the report it's 13 million tones for China x.com/realSandkraken… Which corresponds to 14.3% of global captures of aquatic animals, which is less than Europe with 15.2 million tones or 16.7% of global captures. This is of course despite China having twice Europe's population...
In other words, Europe has 9% of the world's population but fishes 16.7% of the fishes while China has 18% of the world's population but fishes 14.3% of the fishes.
Now you tell me who is overfishing and who isn't...
Can you even read a graph? China is fishing only about a third the amount of the rest of Asia (13 million tones for China vs 30 million tones for the rest of Asia) 🤷♂️
If anyone wonders how to constitute the China allocation of their portfolio, these tickers, based on seating arrangements, are probably not a bad place to start.
That was actually the basic strategy of a friend of mine, very successful investor in China: he simply studied policy statements very deeply as well as signals like this meeting 👇 to understand what were China's strategic economic objectives and which companies would benefit from this. Just like the US has a "don't fight the fed" investment principle, China has in some way a "don't fight the government" equivalent.
Wow, this is huge. I just tried it myself with a foreign phone number (you can apparently choose any country, see screenshot) and it's true: you can now join Douyin - the Chinese version of TikTok - as an international user.
Which means the Great Firewall is coming down in the most unexpected way: with the world joining the China side of the wall.
Really feels like a Berlin wall moment, except in the opposite direction.
For people wondering where the hell I found the app, given it's not on Western app stores: apkpure.com/douyin/com.ss.…
Zero "TikTok refugee" on here so far that I've seen, pure Chinese content
This 👇 is arguably an even bigger Sputnik moment for China than the 6th generation fighter jet: a Chinese AI Model called DeepSeek v3 rivals - and often surpasses - the latest ChatGPT and Claude models in pretty much all respects for a tiny fraction of the training cost (only $5.5m), and it's open sourced (meaning anyone can use, modify, and improve it).
The fact that it's so cheap to train is particularly important as it completely changes the game of who can participate in advanced AI development. Up until now, the assumption was that you needed hundreds of millions or even billions of dollars to train such a model, yet DeepSeek did it with just $5.5m, a sum of money accessible to just about any startup anywhere. Concretely, this means that DeepSeek has just proven that serious AI development is not limited to tech giants.
And their model is not only cheap to train, it's also extremely efficient to run. They use an architecture called Mixture-of-Experts (MoE) where, while their full model has 671 billion parameters (which is huge), it only uses 37 billion at a time. To compare, Meta has 405 billion parameters in their latest Llama3.1 model and uses all 405 billion at a time. DeepSeek V3 is more than 10 times more efficient, yet performs better than Llama3.1 at almost all benchmarks (English, Math, Coding, etc.).
DeepSeek V3's performance at key benchmarks is impressive across the board:
- Crushes advanced math problems (90.2% on MATH-500, vs 78.3% for Claude-3.5-Sonnet and 74.6% for GPT-4o)
- Excels at coding (82.6% on HumanEval, vs 81.7% for Claude-3.5-Sonnet and 80.5% for GPT-4o)
- Can process huge amounts of text at once (128K tokens, roughly equivalent to 100,000 words in English)
- Processes text at 60 tokens per second, about twice faster than GPT-4o
And the craziest part is that it's open-source, meaning that:
- Anyone can download and study the code
- Developers can modify and improve it
- Companies can integrate it into their products without paying API fees
- The entire AI community can learn from it
Lastly, this obviously comes during an interesting context in China-US relations where the US is doing its utmost to prevent China from progressing technologically, especially in AI. As such, this is an absolutely beautiful response by China: "despite all your restrictions, we just built a world-class AI model for 1% of your cost, made it more efficient than anything you have, and open-sourced it for the whole world to use."
It's also a triumph of brains over money and raw power: with its restrictions the US placed China in a situation where it had to use resources more intelligently. As the saying goes "necessity is the mother of inventions"... And here we now are: China may have just changed the rules of the game forever, democratizing the very technology the US tried to restrict and proving, once more, that human ingenuity always finds a way.
Interesting background on the company behind the model 👇
This 👇 potentially changes everything, it looks like Trump envisions a U.S.-China G2.
He says that "China and the United States can together solve all the problems in the world". x.com/kyleichan/stat…
From the point of view of a citizen of the Earth, I'm all for an improved relationship between the U.S. and China. And so far, despite some of his hawkish appointments, all of the statements by Trump himself point to that. Actions must follow of course, which is anything but a given: U.S. rhetoric often bears little correlation to their actions...
From the point of view of a European though, a US-China G2 would be a strategic disaster of the highest order. In fact it's long been something that many European strategic thinkers have warned about: if a US-China G2 materializes without Europe at the table, it will be on the menu.
A U.S.-China G2 would effectively mark an end to the undeclared world war we've been witnessing these past few years and declare the U.S. and China to be the 2 winners, setting the new rules of the game together the way the winners of WW2 did. Europe had a De Gaulle and a Churchill back then to defend its interests, there's virtually no-one today...
Which is why I've long said it was so strategically dumb for Europe to blindly follow the U.S. in its hostile strategy against China as one day (which looks like it may be coming soon) the U.S. would be bound to flip its position, leaving Europe exposed and with a damaged relationship with China. The smarter approach would have been to maintain an equally balanced relationships with both powers while building up European strategic autonomy. Instead of following Washington's lead on chip restrictions, decoupling initiatives, and confrontational rhetoric, Europe could have carved out its own path...
The question now is whether Europe can still recover its strategic position. And unfortunately the challenge appears nearly insurmountable: years of strategic complacency have left Europe vulnerable at precisely the moment when strength and independence are most crucial, with a complete absence of leaders of the caliber needed to navigate such tricky waters...
Love how this is already being mischaracterized by "China watchers" as Trump playing into Beijing's hands: the "G2 that Xi Jinping has hoped for". x.com/BonnieGlaser/s…
When actually the concept of a G2 originates from the very heart of the U.S. establishment, from people like Fred Bergsten, Zbigniew Brzezinski and Kissinger: en.wikipedia.org/wiki/Group_of_…
And China has actually historically been very critical of it, even rejecting the very concept. Here's for instance what Chinese Premier Wen Jiabao told Barack Obama when the idea was floated during his administration (gov.cn/ldhd/2009-11/1…): "The main reasons we don't agree with the concept of a 'G2' are: First, China is a developing country with a large population, and we remain clear-headed about the long road ahead to build a modernized nation; Second, China pursues an independent and autonomous peaceful foreign policy and does not ally with any country or group of countries; Third, China maintains that world affairs should be decided jointly by all countries, not dictated by one or two countries." (original Chinese: 我们不赞成有关"两国集团"提法的主要原因是:第一,中国是一个人口众多的发展中国家,要建成一个现代化国家还有很长的路要走,对此我们始终保持清醒;第二,中国奉行独立自主的和平外交政策,不与任何国家或国家集团结盟;第三,中国主张世界上的事情应该由各国共同决定,不能由一两个国家说了算)
And again now we have the proposal coming from the U.S., not China, and we can quite safely assume it will likely again face quite a lot of opposition from China.