How can Chinese electricity, priced at 80 cents per kilowatt hour, be sold to the United States at a 13 fold increase in price? The end of computing power is electricity. In the global competition of the AI era, China has completed a transition from selling cheap Chinese products to selling computing power by leveraging its advantage in electricity energy. The essence of AI is alchemy of electricity Previously, China only doubled the value of electricity by turning it into aluminum. Now, China has turned electricity into tokens, increasing its value by 13 times. Primary form: 1 kWh of China Electricity sold directly for 0.8 yuan There are issues with transportation costs, storage, etc Traditional industry: converted into aluminum ingot export, with a production value of about 1.5 yuan Electricity solidifies into products that can be stored and transported AI reasoning: Convert tokens into tokens through large-scale model reasoning and sell them to overseas users, with a production value of approximately 11 yuan The transportation cost is almost zero, the settlement cycle is short, and anything can be sold When the end of computing power points to electricity, China has already gained the power to mint in the AI era with an industrial electricity price of 0.8 yuan/kWh and the world's highest installed capacity of new energy. Selling tokens is essentially selling high value-added electricity, increasing the export value of electricity by 13.7 times. 2. Token is the digital container of the 21st century. Just as containers have changed global trade, tokens have changed the form of energy exports by encapsulating electricity into computing power for export, resulting in extremely low transportation costs. Traditional electricity exports are limited by grid coverage and geopolitics, but tokens can flow globally through optical cables. The abandoned wind and solar power in western China can now be used, and the power consumption of chips has become a token that global developers are competing for. But this is not a simple resource export, but a computing power system composed of energy, power infrastructure, chips, and algorithms. The quality may not be the highest, but the price is lower. Being able to gain significant competitive advantages from the market. 3. China's advantage lies in the price advantage of its models. Although it lags behind in algorithms and chips, it is generally the best. Not everything requires the best models or chips to handle. As the global AI industry enters the era of agent explosion, AI is no longer just a dialogue box, but a digital employee running 24/7. This directly led to an exponential increase in Token and API call volume, and cost became a factor that had to be considered. Silicon Valley has top-notch algorithms, but faces problems of power shortages and expensive electricity prices. The price difference of 16 times between the Chinese model and top models such as Claude is not completely unusable, and highly procedural tasks such as customer service and sales do not necessarily require the best model. When AI enters the stage of application explosion and the gap in model capabilities is no longer particularly large, the importance of cost-effectiveness is elevated. 4. From BTC mining to industrial computing power In the most vigorous decade of China's power development, 70% of the world's Bitcoin was mined through cheap hydropower. Today, China's computing power supports over half of the world's inference tasks, thanks to its power infrastructure at the time. Since the 519 ban, China's computing power exports seem to have undergone a magnificent transformation. Previously, Bitcoin was digital gold, but now the token is digital oil (essential). China is utilizing its well-developed industrial system to thoroughly industrialize, cheapen, and globalize AI reasoning. China is using the world's cheapest sockets and the most advanced computing power factories to package the cost of 0.8 yuan per kilowatt hour into a 16 yuan token and sell it to the world through fiber optic cables.