Every time China showcases a technological advancement, the United States responds with a predictable narrative: a specific firm or initiative has caught them off guard. Notable examples include DeepSeek's AI model which rivals top American systems and a hypersonic missile test described by a senior US general as alarmingly close to a pivotal moment akin to Sputnik. These instances are often treated as isolated incidents.
A recent paper from the National Bureau of Economic Research undermines this narrative, arguing that the characterization of these events is not only inadequate but potentially misleading.
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