China has formally mandated government agencies and state-owned enterprises to purchase domestically made AI chips, marking a major step in Beijing’s drive for technological self-reliance.
According to the Financial Times, the Ministry of Industry and Information Technology added Huawei and Cambricon processors to its official procurement list, known as the “Xinchuang” (Information Technology Innovation) framework. It’s the first time China has issued written guidance instructing public institutions to prioritize local chip suppliers.
The decision comes just before President Donald Trump announced that the US would allow Nvidia to sell its advanced H200 AI chips to “approved” Chinese customers. Analysts say the timing reflects Beijing’s intent to shield itself from Washington’s policy swings while boosting its domestic semiconductor ecosystem.
China’s latest move could generate billions in sales for local chipmakers and accelerate efforts to reduce reliance on American technology. It also signals growing confidence that Chinese chips have reached a competitive level — even as some institutions face challenges adapting software designed for Nvidia hardware.
A policymaker quoted by FT acknowledged the transition pains but said, “We have to get there. The growing pains are unavoidable.”
