Grace Hsiao

Is their software good enough?

I don't think anyone really has good enough software right now as of now.

A lot of these companies didn't exist 10 years ago or not even five years ago.

Yeah, that's fair.

Okay, I can shorten the timeframe in three years.

All right.

So don't chase me down if I'm wrong in three years, but I think, you know, there's two parts.

One is I think I agree with you.

Hardware side, China's definitely going to have, I think, more breakthroughs and have a lot of edge.

Not only is the supply chain all domestically there, I think something overlooked by people is the fact that a lot of the know-how is also there.

And that's not...

easy to transfer overnight.

You know, Patrick McGee's book recently in his Apple book saying how Apple tried to move this whole supply chain to India.

The biggest bottleneck is actually these like highly skilled laborist jobs that actually are so technical that cannot be even trained in one generation.

It took decades to really train up the local community labor force, whatnot.

So that's still there.

Now, because of that ecosystem, a lot of these robots, home appliances, whatnot, these tech gadgets are produced at less than 50% of the cost of where you could produce at anywhere else in the world.

They are also extremely innovative.

I've talked to people at EV companies, just for example, to ship out a new model from ideation to production to hitting the floors.

That takes maybe less than 15 months.