China Prioritises Domestic AI Chips

China has begun including domestically produced AI chips in its official procurement lists, signalling a move to prioritise local technology. This initiative encourages the use of processors from companies like Huawei and Cambricon. The decision precedes the US government's allowance of Nvidia to export certain chips to China. This action highlights China's commitment to bolstering its domestic semiconductor industry and reducing reliance on foreign technology, particularly in critical sectors like AI. The move could impact major foreign suppliers such as Nvidia, AMD and Intel. China sees semiconductors as critical to its technological sovereignty. This directive supports local companies such as Huawei Technologies, Cambricon Technologies, Moore Threads and Enflame Technology by handing them access to state-funded infrastructure projects. The transition poses challenges for developers accustomed to foreign software ecosystems, and risks widening the technological gap between China and the US in high-end AI computing.