Daniel Varela in Market: China’s Offensive for Global Dominance

Each spring, the National Congress of the Chinese Communist Party sets the tone for China’s economic priorities for the years ahead. Beyond the growth targets, it is often the industrial policy directions that reveal the country’s true strategic ambitions.

This year, one axis appears particularly structuring: the interplay between artificial intelligence and energy.

The rise of AI is gradually transforming electricity into a strategic resource. Training models and operating data centres require considerable computing power and massive energy consumption. In this context, the cost and availability of electricity are becoming a key factor in technological competitiveness.

According to Daniel Varela, CIO of Piguet Galland, China already has an advantage in this area:

“The rapid expansion of renewables in electricity generation, currently around 40% if nuclear is included, represents a clear advantage for the Chinese economy as a whole.”

This energy advantage could gradually support the development of infrastructure linked to artificial intelligence. However, global competition in this field also depends on other decisive factors, such as access to next-generation semiconductors and the depth of the research and talent ecosystem.

Moreover, the expected economic growth target of below 5% also reflects the evolution of China’s economic model. After several decades of strong expansion driven by industrialisation and urbanisation, the Chinese economy is entering a more mature phase. The authorities now appear to favour more qualitative growth, focused on sectors considered strategic: semiconductors, artificial intelligence, electric mobility and renewable energy.

In this context, China’s ability to combine technological power with energy autonomy could play a decisive role in shaping the global economic balance in the years ahead.

Read the full analysis in the article published by Market.ch (french only)