When we hear the word “war,” we think of bombs, missiles, and tanks—things that terrify people and can suddenly inflict total devastation. But war can also be waged in different ways, without armies or explosives. It may be so subtle that even someone at the center of it all could look around carefully and not realize a fierce conflict is underway. Some respected news and market commentators believe China is fighting just such a war right now, with the U.S. economy and high-tech stocks as its opponents.
It’s no secret that America’s economy has plenty of problems. Even setting aside the debt and deficit, unemployment is rising rapidly, affordable housing is scarce, and food prices are soaring again, to name just a few issues. The last thing the economy needs is a war with a ruthless enemy. Nevertheless, like it or not, one may be imminent. In fact, it may already be happening.
This isn’t a new development—tensions between these two superpowers have been escalating steadily for a long time. In recent months, they’ve intensified noticeably. Here’s one theory about what’s happening behind the scenes and why.
More Pie, Please
There’s enough pie out there for every country. However, some nations see things differently and want it all, driven by a desire to dominate the world. This ambition isn’t new—it’s been around for millennia. Yet some countries still harbor this goal, and China is one of them.
“The Chinese economy is designed to destroy the U.S. economy, just as the Chinese military is designed to fight Western militaries,” says Steve Poplar, an accountant who writes market and political commentary for the Poplar Report. Poplar concedes this isn’t its only objective—profit is another. “But the Chinese government has purposely built its economy to undermine the European and U.S. economies.”
In Poplar’s view, the last stronghold for the U.S. economy is the stock market, particularly high tech. Apple, Google, Nvidia, and the rest of the “Magnificent 7” companies generate massive profits and dominate their industries. These few firms have pushed the market to record highs and delivered incredible returns for investors.
Take Microsoft, for example. Not every PC runs Windows, but as AI Overview notes, “it’s the dominant operating system for personal computers, and many PCs even come pre-installed with it.” Whenever someone buys one of those PCs anywhere in the world, Microsoft profits—and that money ultimately lands in the U.S.’s lap. To an extent, the Magnificent 7 can rake in revenue even if they just sit back and do nothing.
China allegedly continues to steal trade secrets from U.S. tech companies, making minor tweaks and improvements before claiming the innovations as their own. These products are in high demand and potentially lucrative. But according to this theory, China isn’t interested in selling this technology. Instead, they’re practically giving it away for free!
This makes no sense at first glance. Why give away a marketable product when it could fetch huge profits? Rest assured, there’s a method to the madness. Poplar and others argue this is part of a strategy to undermine U.S. tech companies, the U.S. market, and the broader economy.
In other words, business is no longer just an arena for corporate competition—it’s also a critical political tool in a battle for global dominance. And China is willing to go to any lengths to achieve its aims.
January 27 Rout
Sharp market swings are par for the course on Wall Street, but the plunge on January 27 was extraordinary. “A sell-off of global technology shares has wiped up to $1 trillion off U.S. stock markets, with the U.S. chipmaker Nvidia falling more than 13% and losing $465 billion of its market value—the biggest such loss in U.S. market history,” The Guardian reported. “The popularity of a new Chinese AI app from the start-up DeepSeek, which has called U.S. dominance into question, is behind the rout.”
Microsoft, Meta, and Alphabet (Google’s parent) each lost between 2.2% and 3.6%, while Dell Technologies and Super Micro Computer—both makers of AI servers—dropped by roughly triple that, The Guardian added. European and Japanese tech stocks also fell sharply as “DeepSeek raised doubts about the sustainability of the U.S. artificial intelligence boom.”
Not Alone
Poplar isn’t the only analyst who believes China is trying to wreck U.S. technology. Balaji Srinivasan shares this view. If the name isn’t familiar, Zero Hedge describes him as a tech entrepreneur, investor, and futurist who has held senior roles at top Silicon Valley venture capital firms and boasts a strong track record of predicting tech trends, among other credentials.
Srinivasan echoes Poplar’s stance, arguing that China’s approach to high tech is to “copy it, optimize it, scale it, then wreck the Western original with low prices.” But he goes further.
Srinivasan says China knows it lacks global prestige as a “copycat,” but DeepSeek has shifted that perception. “Becoming Number One in AI is now something they consider achievable and a matter of national pride,” he explains.
Meanwhile, DeepSeek has reportedly “gone viral” in China, and its open-source strategy means anyone can use its technology. Virtually unknown before January 27, it’s now a household name. The company’s founder has even met with Chinese leader Xi Jinping and Li Qiang, China’s second-in-command.
“They likely have unlimited resources now,” Srinivasan said. “China thinks it has an opportunity to hit U.S. tech companies, boost its prestige, help its domestic economy, and squeeze the margins out of AI software globally.”
Looking ahead, Srinivasan predicts China will profit by selling affordable, high-quality AI-enabled hardware—from smart homes and self-driving cars to consumer drones and robot dogs.
“China essentially giving away this technology may be bad for AI software companies, but it’s good for companies that use AI, including Chinese ones. Consider adding some China exposure if you don’t have much already,” he suggests.
One final thought: Some hardware and software companies will benefit from the widespread, accelerated adoption of AI. But one question remains unanswered: Will this shift be good for ordinary people too?
Sources: AI Overview; google.com; theguardian.com; zerohedge.com; YouTube: Poplar Report
Gerald Harris is a financial and feature writer. Gerald can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.
