China positioned to dominate AI competition through cost advantages in power and manufacturing plus expanding open-source adoption, says Jefferies strategist Mohit Kumar

Mohit Kumar, Jefferies's global macro strategist, identifies cheap power costs as a key competitive advantage for China's AI development

China benefits from lower manufacturing costs and favorable valuations in its tech sector compared to Western competitors

Wider adoption of open-source AI models in China is accelerating development and reducing barriers to entry for companies

Strategic combination of infrastructure, economics, and technological access positions China as the 'big winner' in the global AI race