China recently deployed the world's largest offshore turbine, each of which powers over 44,000 households.

Chinese engineers are developing massive renewable projects, at scale, in extreme environments.

Meanwhile, the cost of electricity from renewables continues to fall sharply. In the case of offshore wind, the cost has fallen more than 60% in just ten years.

Closing scene, Beihai Park, Beijing

Resources and links:

Global Coal Production by Country
https://www.voronoiapp.com/energy/Global-Coal-Production-by-Country-5870

Mapped: The Average Cost of Electricity by U.S. State
https://www.visualcapitalist.com/mapped-the-average-cost-of-electricity-by-u-s-state/

Trump Administration to Pay $1 Billion to Energy Giant to Cancel Wind Farms
https://www.nytimes.com/2026/03/23/climate/offshore-wind-gas-trump-total.html

The Trump Administration Protects U.S. National Security by Pausing Offshore Wind Leases
https://www.doi.gov/pressreleases/trump-administration-protects-us-national-security-pausing-offshore-wind-leases

China switches on world’s first 20MW wind turbine to feed power into the grid
https://interestingengineering.com/energy/wind-turbine-powers-china-grid

The United States is aggressively expanding natural gas production to meet new energy demands for these AI data centers.

But large order backlogs for gas turbines are years long, and turbine manufacturers are struggling to increase production. New turbine orders for Mitsubishi, GE Vernova, and Siemens can not be delivered for at least four years.

Over two-thirds of AI projects that have been announced do not yet have a gas turbine manufacturer under contract.

Chinese companies building standardized, more compact designs are winning orders to supply new data center builds, and can deliver in just eighteen months.

Closing scene, Xinjiang

Resources and links:

GE Vernova expects to end 2025 with an 80-GW gas turbine backlog that stretches into 2029
https://www.utilitydive.com/news/ge-vernova-gas-turbine-investor/807662/

Mitsubishi Power strains to meet gas turbine demand amid US labor crunch
https://asia.nikkei.com/business/energy/mitsubishi-power-strains-to-meet-gas-turbine-demand-amid-us-labor-crunch

Mitsubishi Heavy to Double Turbine Capacity as Demand Soars
https://www.bloomberg.com/news/articles/2025-08-31/mitsubishi-heavy-to-double-gas-turbine-capacity-as-demand-soars

Gas turbine manufacturers expand capacity, but order backlog could prove stubborn
https://www.utilitydive.com/news/mitsubishi-gas-turbine-manufacturing-capacity-expansion-supply-demand/759371/

Betting big on data centers, U.S. now leads world for new gas power development
https://globalenergymonitor.org/report/betting-big-on-data-centers-u-s-now-leads-world-for-new-gas-power-development/

China’s Jereh Rises After Landing USD341 Million Gas Turbine Generator Order for US Data Centers
https://www.yicaiglobal.com/news/chinas-jereh-rises-after-landing-usd341-million-gas-turbine-generator-order-for-us-data-center

Gas Turbine Market Size
https://straitsresearch.com/report/gas-turbine-market

Fixed-income investors are shunning US capital markets, and liquidating Treasury bond holdings. Auctions for new debt issuance are performing poorly, with buyer interest at the worst levels in years.

Chinese bonds are backed by its massive manufacturing and trading sectors, and its economy is far better insulated from supply-side shocks in energy markets.

Investors now perceive Chinese government bonds to be the preferred "safe-haven" for risk aversion and total returns.

Closing scene, Dongguan, Guangdong

Resources and links:

Bloomberg, China’s Years-Long Retreat From US Treasuries Flags Bigger Risks
https://www.bloomberg.com/news/articles/2026-02-11/china-s-years-long-retreat-from-us-treasuries-flags-bigger-risks

China Urges Banks to Curb Exposure to US Treasuries
https://www.bloomberg.com/news/articles/2026-02-09/china-urges-banks-to-limit-holdings-of-us-treasuries-citing-market-volatility

U.S. endures weakest Treasury auctions in over 3 years as anxiety around Iran war grows
https://www.marketwatch.com/story/u-s-endures-weakest-treasury-auctions-in-over-3-years-as-anxiety-over-iran-war-grows-fb9a20a8

Chinese Bonds Are Appealing as Reserve Assets, Gavekal Says
https://www.bloomberg.com/news/articles/2026-03-25/chinese-bonds-are-appealing-as-reserve-assets-gavekal-says

10-year government bonds yields by country, most recent
https://tradingeconomics.com/bonds

Inside China Business, Now everyone is dumping US government bonds
https://www.youtube.com/watch?v=izq542VdD8s

Now the Persian Gulf War is shutting down airports across the Middle East, and further tightening air corridors.

Air ticket prices are rocketing higher, and planes full on flights between Europe and Asia.

Chinese carriers enjoy permission to overfly Russia, and are taking advantage, adding 3,000 flights between major commercial hubs in Europe and China.

Closing scene, Guangzhou

Resources and links:

China-Europe Routes Grow As Chinese Carriers Gain Edge
https://aviationweek.com/air-transport/airports-networks/china-europe-routes-grow-chinese-carriers-gain-edge

South China Morning Post, China’s airlines add 2,900 flights to Europe as Russia access pays dividends
https://www.scmp.com/economy/china-economy/article/3347994/chinas-airlines-add-2900-flights-europe-russia-access-pays-dividends

How Persian Gulf turmoil is reshaping Europe-Asia aviation landscape
https://www.scmp.com/economy/china-economy/article/3345379/how-persian-gulf-turmoil-reshaping-europe-asia-aviation-landscape

Inside China Business, Chinese airlines grab market share from US and European carriers who have to fly around Russia
https://youtu.be/LckP2YOpHOI

The war against Iran is driving bondholders to dump US government debt at a record pace, and foreign Treasury holdings at the NY Fed are at the lowest level in nearly fifteen years.

The heavy liquidations are driving bond yields in the United States higher, and borrowing costs for government, and American households and businesses, are spiking higher.

Closing scene, Qingweilou Museum, Xianyang

Resources and links:

Foreign Central Banks Cut New York Fed Treasury Holdings To 2012 Lows
https://finimize.com/content/foreign-central-banks-cut-new-york-fed-treasury-holdings-to-2012-lows

China is dumping US treasuries and buying Gold
https://www.fxstreet.com/analysis/china-is-dumping-us-treasuries-and-buying-gold-202404212302

Foreign central banks sell US Treasuries amid war in Iran
https://ft.pressreader.com/1389/20260401/281681146423183

China’s Years-Long Retreat From US Treasuries Flags Bigger Risks
https://www.bloomberg.com/news/articles/2026-02-11/china-s-years-long-retreat-from-us-treasuries-flags-bigger-risks

Chinese Bonds Are Appealing as Reserve Assets, Gavekal Says
https://www.bloomberg.com/news/articles/2026-03-25/chinese-bonds-are-appealing-as-reserve-assets-gavekal-says

China surpasses $1 trillion trade surplus despite Trump tariffs
https://businessreport.co.za/business/2025-12-11-china-surpasses-1-trillion-trade-surplus-despite-trump-tariffs/

Lesson 3 (above). Balance of Payments — Why Current and Capital Accounts Net Out.
https://www.aei.org/carpe-diem/khan-academy-three-part-video-series-on-the-balance-of-payments-and-why-there-is-no-trade-imbalance/

Just one small county in Henan province produces over 30 billion carats of natural diamonds, every year.

China's luxury buyers are now turning away from natural stones, resulting in a collapse in business for India, who supplies most of China's natural diamonds.

Hundreds of millions of dollars' worth of diamonds have been returned to India's diamond exchange, which is today 95% empty. India's diamond exports to the United States are also plunging.

In Belgium, the industry has shrunk more than half. And Botswana aims to throw out DeBeers entirely.

Closing scene, Yueyang, Hunan

Resources and links:

Behind the Numbers: China’s Diamond Industry
https://www.sixthtone.com/news/1015760

Empty Diamond Trading Hub Mirrors Pain for $80 Billion Industry
https://www.bloomberg.com/news/features/2026-03-18/trump-s-tariffs-and-china-s-luxury-slowdown-pile-pressure-on-diamond-industry

County more than diamond in the rough
https://www.chinadailyhk.com/hk/article/602926

Even though government bonds from the US and UK yield nearly three times lending rates in Hong Kong and China, risk-averse investors are shifting funds to HK.

Hong Kong is the financial center for emerging Global Majority system, and Southeast Asia enjoys far stronger economic growth.

China also has tight relationships with Iran, who has granted Chinese ships safe passage through the Strait of Hormuz.

Closing scene, Hongen Pavilion, Chongqing

Resources and links:

S&P: Potential outflow from Gulf banks of around US$307 billion
https://www.idnfinancials.com/news/62301/sp-potential-outflow-from-gulf-banks-of-around-us307-billion

U.S. debt suddenly draws weaker demand as $10 trillion must be rolled over this year amid Iran war. ‘The bond market remains undefeated’
https://fortune.com/2026/03/28/us-debt-auctions-weak-demand-treasury-yields-10-trillion-refinance-iran-war-bond-market/

U.K. government borrowing costs at highest since 2008
https://www.cnbc.com/2026/03/20/uk-gilt-market-interest-rates-boe-inflation-reeves.html

Hong Kong should use ‘safe haven’ status to draw capital from Gulf: agency chief
https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3347376/hong-kong-should-use-safe-haven-status-draw-capital-gulf-agency-chief

Super Rich Regain Zest for Hong Kong as War Stokes Gulf Unease
https://www.bloomberg.com/news/articles/2026-03-27/super-rich-regain-zest-for-hong-kong-as-war-stokes-gulf-unease

Super Rich Regain Zest for Hong Kong as War Stokes Gulf Unease
https://financialpost.com/pmn/business-pmn/super-rich-regain-zest-for-hong-kong-as-war-stokes-gulf-unease

Global investors pivot to ‘stability’ of China amid turmoil: Milken forum speakers
https://www.scmp.com/business/markets/article/3347593/global-investors-pivot-stability-china-amid-turmoil-milken-forum-speakers

U.S. Embassy in Baghdad Hit by Missile
https://www.wsj.com/livecoverage/us-israel-iran-war-news-2026/card/u-s-embassy-in-baghdad-hit-by-missile-DukK29ECyDjwtX7fIAGt

Israel’s Missile Defense Under Scrutiny After Iranian Attack
https://www.nytimes.com/2026/03/22/world/middleeast/israel-missile-defense-iran.html

The Chinese already are building more nuclear power plants than the rest of the world, combined.

If the goals are achieved, China's nuclear power production will provide the electricity equivalent of over 80 million American households, and 200 million people.

Chinese engineers seem to have solved the "cost curse" problem, which makes new plant construction prohibitively expensive and time-consuming in North America and Europe. China's costs to bring online new nuclear capacity is slightly below their costs of twenty years ago.

Closing scene, Jiuquan City, Gansu

Resources and links:

Nuclear plants too expensive? China shows low-cost construction possible
https://hub.jhu.edu/2025/07/28/curbing-nuclear-power-plant-costs/

Infrastructure Costs: Nuclear Edition
https://www.samdumitriu.com/p/infrastructure-costs-nuclear-edition

Cost of nuclear power decreasing for China
https://www.reddit.com/r/Infographics/comments/1r47vas/cost_of_nuclear_energy_construction_in_various/#lightbox

Nuclear Reactor Construction Starts Drop Again in the World
https://www.worldnuclearreport.org/Nuclear-Reactor-Construction-Starts-Drop-Again-in-the-World

China Keeps Pushing Nuclear Power With Ambitious Growth Target
https://www.bloomberg.com/news/articles/2026-03-09/china-keeps-pushing-nuclear-power-with-ambitious-growth-target

Gigawatt: The Solar Energy Term You Should Know About
https://www.cnet.com/home/solar/gigawatt-the-solar-energy-term-you-should-know-about/

With the Persian Gulf closed by Iranian forces, energy prices are skyrocketing across the world. Economies that are dependent on smooth traffic flows from the Middle East are especially vulnerable to shutting down, just weeks after such closures.

The same impact is felt at the household and small business level, as pumps are running dry and gasoline is rationed.

China's EV revolution will be exported to markets in Asia, Africa, and Europe, and displace fossil fuel-burning vehicles.

Closing scene, Li River, Guilin

Resources and links:

CHART: China’s global electric car dominance
https://www.adamasintel.com/charts-china-global-electric-car-dominance/

Chinese carmakers rev up EV production in South-east Asia but net gains to local workers uncertain
https://www.straitstimes.com/asia/chinese-carmakers-rev-up-ev-production-in-south-east-asia-but-net-gains-to-local-workers-uncertain

China's EV battery makers widen lead to over 70% global share
https://asia.nikkei.com/business/automobiles/electric-vehicles/china-s-ev-battery-makers-widen-lead-to-over-70-global-share

What’s Behind China’s 70% Global Share of EV Batteries?
https://medium.com/@impactnews-wire/whats-behind-china-s-70-global-share-of-ev-batteries-4c1e0ce8ed29

Where Chinese EVs Are Selling the Most Worldwide
https://www.visualcapitalist.com/where-chinese-evs-are-selling-the-most-worldwide/

EU Chief Demands China Address Trade Imbalance as Tensions Flare
https://www.bloomberg.com/news/articles/2025-07-08/eu-chief-demands-china-address-trade-imbalance-as-tensions-flare

Ship Traffic in the Strait of Hormuz Has Virtually Stopped
https://www.statista.com/chart/35984/ship-traffic-in-the-strait-of-hormuz

Major natural gas refineries, which source massive volumes of urea and other nitrogen-based nutrients, are offline and have declared Force Majeure on previous contracts.

Food prices are closely correlated with crude and diesel fuel costs, and will go up as a result of the doubling in energy prices.

But the crisis in fertilizer markets is an urgent problem, and the window will slam shut in just days on farmers who need urea for Spring planting.

Closing scene, Yandang Mountains, near Wenzhou, Zhejiang

Resources and links:

Surging fertilizer prices threaten global food security
https://ukragroconsult.com/en/news/surging-fertilizer-prices-threaten-global-food-security

Fertilizer prices soar as Strait of Hormuz tensions rise—forcing U.S. farmers to rethink spring planting
https://fortune.com/2026/03/12/fertilizer-prices-strait-of-hormuz-farming-spring-planting-iran-war/

Middle East Tensions Raise Spring Planting Concerns
https://www.fb.org/market-intel/middle-east-tensions-raise-spring-planting-concerns

QatarEnergy announces force majeure following Iran attacks: statement
https://www.arabnews.com/node/2635251/business-economy

Middle East Conflict: Urea supply disruptions could be catastrophic
https://www.crugroup.com/en/communities/thought-leadership/2026/Middle-East-Conflict-Urea-supply-disruptions-could-be-catastrophic/

Marine insurers cancel war risk cover, tanker costs to rise as Iran conflict intensifies
https://www.reuters.com/world/middle-east/ship-insurers-cancel-war-risk-cover-due-iran-conflict-2026-03-02/