Alice Han

It's still not yet profitable.

And as we mentioned previously at the top of this episode, October 2023, Moore's Threads was added to the U.S.

's entity listing.

So there's a ban on what it can import.

And right now, to your point, James, they're trying to offer these GPUs within a full stack of chips, networking and software that is used to run the chips in data centers.

So the goal really is to help in AI training, 3D graphics rendering and physical simulation.

Whether or not they can get there and be competitive in NVIDIA remains to be seen, but it certainly is a compelling story, not just because of the government push, but even the background of the founder.

This is a guy who worked at NVIDIA

at the China desk for 15 years.

He was the head of China.

He was a computer science graduate from Nanjing University of Science and Technology, worked for HP and Dell before NVIDIA, and now is a newly minted billionaire along with a lot of his other colleagues.

So we'll see whether or not he can be the new Jensen Huang of China.

But certainly, I think we agree, James, that there's a lot of government backing behind this guy, as well as the other companies that are coming up behind them.

Okay, we'll be back with more just after a quick break.

Stay with us.

Welcome back.

As we head into 2026, one of the biggest open questions in global markets is whether China is finally ready to let the renminbi strengthen in a meaningful way.

On paper, the currency is deeply undervalued, and historically so, by as much as 40% to 50%, depending on the metric you use.

And economists inside and outside China say a stronger yuan could boost household spending, ease trade tensions with the rest of the world, and help Beijing pivot away from its export-led growth model.

But politically, Xi Jinping's team is caught between wanting global credibility for the yuan and wanting tight control over the exchange rate at a time of deflation, weak domestic demand and a fragile property sector.