China is actively pushing its artificial‑intelligence industry to rely more heavily on domestically produced semiconductors as part of a broader strategy to reduce dependence on foreign technology. Beijing recently added home‑grown AI chips to its government‑approved supplier list, signalling strong official support for local chipmakers and encouraging AI firms to choose Chinese alternatives over imported processors. This push aligns with China’s long‑term goal of enhancing technological self‑sufficiency amid global competition in the AI hardware space.
The move takes place against a backdrop of shifting US–China tech relations, where export control policies and geopolitical tensions have heightened incentives for domestic chip development. China’s prioritisation of its own chip industry reflects concerns about the potential impact of foreign export decisions on its AI ambitions and broader economic strategies.
Local companies such as Huawei and Cambricon are among the beneficiaries of this policy direction, with their chips now receiving government backing for public sector use. While China continues to develop its own chip ecosystem, there are still challenges in compatibility with existing infrastructure and in scaling production to meet demand across all AI use cases.
Analysts see this policy as part of a wider push toward self‑reliance in critical technologies, with Chinese regulators also reportedly encouraging private sector adoption of domestic chips and limiting use of some foreign options. These efforts may reshape China’s role in the global AI chip supply chain, strengthening internal capability while potentially fragmenting international market dynamics.
