Part 2/15:
This move is not just about reducing energy bills; it is a calculated effort to turn energy abundance into a geopolitical asset. Provinces like Gansu, Guizhou, and Inner Mongolia, with plentiful hydro and coal energy, are leading these incentives. Electricity costs in these inland regions are already lower than in coastal areas, and with subsidies, they could drop even further—down to about 5.6 US cents per kilowatt-hour, compared to the US average of approximately 9.1 cents. This artificially cheap power makes Chinese chips more financially attractive despite their lower efficiency relative to Nvidia’s state-of-the-art offerings.