China has ramped up pressure on local companies to buy domestically produced AI chips over Nvidia’s Chips, aiming to bolster its semiconductor sector amidst rising US sanctions. The move is part of Beijing’s strategy to reduce reliance on foreign tech while promoting local giants like Huawei and Cambricon.
- Chinese regulators issued unofficial guidance discouraging firms from buying Nvidia’s H20 chips, which comply with US restrictions.
- Nvidia shares dropped 3.9% following the news, despite the company’s increased China sales.
- China’s AI startups and big tech firms like ByteDance and Alibaba continue investing in AI development, though some are still stockpiling Nvidia chips ahead of possible new sanctions.
This push reflects China’s ongoing efforts to strengthen its tech industry and counteract US export controls that aim to limit its AI advancements.
