The last game I started (new beta), I played as Japan. I decided to start in 1890, max difficulty and build only 1 ship. A couple years in the chinese declare war. I fight with my 1 ship against around 30 torpedo boats, 20 heavy cruisers and 1 battleship. I barely took any damage, while sinking most enemy ships in 1-2 salvos. I had a rangefinder (first level), tier 2 guns and some more advanced armor. This was sufficient to hit most of the time, while they hit hardly anything.
Technology is very strong and the AI cannot keep up with the player.