China mandates all state-funded data centres to use domestic AI chips, escalating its tech rivalry with the US.
China Tightens Rules on Data Centres, Mandates Use of Domestic AI Chips.
The Chinese government has introduced new regulations requiring all data centre projects that receive state funding to use only domestically manufactured artificial intelligence (AI) chips, according to sources familiar with the matter.
Ban on Foreign Chips in Ongoing Projects
Amid rising tensions with the United States, Chinese authorities have instructed data centres that are less than 30% complete to remove all installed foreign chips or cancel their planned purchases. Projects that are further along in development will be evaluated on a case-by-case basis before receiving final approval.
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Beijing’s Push for Tech Independence
This directive follows escalating trade restrictions between Beijing and Washington, marking a significant step in China’s drive toward technological self-reliance. China’s access to advanced AI chips—especially those developed by U.S. chipmaker Nvidia—has been a key point of contention between the two nations. As both powers race to dominate high-end computing and artificial intelligence, the move underscores Beijing’s determination to reduce its reliance on American technology.
