On January 27, DeepSeek, a China-made artificial intelligence (AI) model, shook the tech world, bringing a new AI chatbot to market at a fraction of the price of other key global players.

As markets continue to gauge the technological effect as well as its asset price implications, a key question emerges: could China’s technological breakthrough challenge US exceptionalism (the outperformance of US risk assets and the US dollar relative to global markets)? This is a scenario that merits consideration...

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