China's semiconductor exports rely on generating demand in the Global South

https://lnkd.in/dHTv7mm6 Building the Pipeline: Why China Exports AI Infrastructure, Not Semiconductors The success of China’s semiconductor exports hinges on its ability to not just fulfill but also to generate demand for chips across the Global South. By Ho Ting (Bosco) Hung and Moritz von Knebel September 01, 2025

The Cyberspace Administration of China (CAC) has directed major technology companies, including ByteDance and Alibaba, to stop purchasing all AI chips from Nvidia, including the RTX Pro 6000D, and to cancel existing orders. This move aligns with China’s efforts to strengthen its domestic semiconductor industry and reduce reliance on foreign technology. Situation Analysis: • Focus on self-sufficiency: China is pushing the development of local AI chips, such as those produced by Cambricon, to meet growing domestic demand. • Trade tensions with the US: The directive comes amid rising trade tensions between China and the US, particularly in the technology sector. • Impact on Chinese companies: Despite government pressure, some major Chinese firms remain interested in purchasing Nvidia chips, highlighting challenges in implementing these policies. Recommendations for the sector: • Invest in local innovation: Companies should invest in developing local technologies to reduce dependence on foreign suppliers. • Monitor regulatory changes: Keeping track of government directives and adapting accordingly is crucial to ensure compliance and mitigate risks. • Explore new markets: Expanding into other markets can help reduce potential negative impacts from local policies. These developments reflect a strategic shift in China’s approach to the AI industry, requiring both global and domestic companies to adapt to ensure business sustainability. Sources • Reuters • Financial Times #ArtificialIntelligence #Technology #Semiconductors #LocalInnovation #China #Nvidia #GlobalEconomy

Export controls were intended to slow China's progress. Instead, they accelerated localization, created a protected customer base for Huawei, and handed Beijing the very leverage we should be keeping within American enterprise. In my latest Wall Street Journal article, I criticize failed export policies that mask protectionism for Chinese semiconductors. These policies confuse intentions with outcomes, patriotism with losing. By restricting Nvidia and other American companies, Washington isn’t 'containing' China but forcing the largest AI talent market to develop alternatives and transfer profits from American to Chinese companies. Each American chip sold worldwide boosts U.S. soft power and makes the world safer. Export restrictions on GPUs risk ceding ground to Huawei and shielding Chinese companies from better U.S. products. The best approach is to export American AI and stop protecting Chinese firms by hiding behind the word "patriotism." https://lnkd.in/gp9Rzdqi

What if chip wars weren’t just about technology, but leverage in trade negotiations? The Cyberspace Administration of China has invoked its anti-monopoly law to block Chinese tech firms from acquiring AI chips from U.S.-based Nvidia. The move signals two things: 1️⃣ Beijing’s bid for trade leverage amid tense U.S.–China negotiations. 2️⃣ Rising confidence in domestic chipmakers, who are increasingly positioned as alternatives to U.S. suppliers. In a world where semiconductors equal power, this is more than regulation, it’s strategy. Authored by Prayant Praved for Covering China. Do you think China can reduce its dependence on U.S. chips faster than Washington expects? PARENT: THE GEOSTRATA #US #China #AI #Semiconductors #Chip #Nvidia #Trade #Geopolitics #Huawei #CoveringChina #Export #Digital #Network

China says it is willing to maintain dialogue in response to report of Nvidia AI chip ban | Reuters China is willing to maintain dialogue with all parties involved to keep global industrial and supply chains stable, its foreign ministry said on Thursday in response to reports of the Chinese regulator ordering firms to halt purchases of Nvidia AI chips. "We have always opposed discriminatory practices against specific countries on economic, trade, scientific and technological issues," ministry spokesperson Lin Jian told a regular press conference without elaborating https://lnkd.in/gXQGNDV4

China's latest move in the tech war reveals a sophisticated understanding of where American chipmakers are most vulnerable. Beijing isn't chasing headlines by targeting AI processors—they're going after the analog semiconductors that generate steady cash flow for companies like Texas Instruments. With $3 billion in China revenue at stake (nearly 20% of TI's total), this anti-dumping probe hits where it hurts most. The strategic insight here is profound. While Washington restricts access to cutting-edge lithography, Beijing is targeting mature, high-volume segments where China has viable domestic alternatives and US firms depend on volume economics. The implied 300% dumping margin might be political theater, but the revenue exposure is real. This creates immediate opportunities for non-US suppliers—Taiwan's Silergy, Japan's Renesas, and Germany's Infineon are positioned to capture market share as procurement teams scramble to reduce geopolitical concentration risk. The lesson for strategists: there are no "safe" commodity components anymore. Even the most boring parts of your supply chain now carry sovereign risk. How are you stress-testing your component sourcing against escalating US-China tensions? https://lnkd.in/giwj_S4b

#Chinese regulators recently convened domestic chipmakers such as #Huawei and #Cambricon, along with tech giants like #Alibaba and #Baidu, to evaluate the performance of locally developed #AI processors against #Nvidia

China's progress in chip manufacturing means fewer imports and greater self-reliance. That reduces their exposure and increases America's if Taiwan is disrupted.

China is urging local companies to avoid using Nvidia’s H20 AI chips. The guidance follows a U.S. policy reversal allowing limited chip sales to China. A 15% U.S. export tax and resumed mineral shipments are also under discussion. Full story here: https://ow.ly/qB8i50WHcTL

What Happened in China This Week: 1. The Hang Seng Tech Index jumped nearly 5%, led by China’s AI surge. AI names soared — SenseTime rose 21%, Baidu gained 14%. 2. Chipmakers rallied: Hua Hong Semiconductor +18%, SMIC +11%. 3. Cooling system suppliers Shenzhen Envicool (SZSE:002837) and Johnson Electric (SEHK:179) are up 150%+ YTD. 4. China Unicom ordered 22,832 domestic AI chips, with Alibaba supplying 16,384 units. 5. Alibaba’s T‑Head unveiled its PPU AI chip, benchmarked against Nvidia’s H20 and A800—with comparable performance. 6. Huawei announced its Atlas 950 SuperCluster, claiming 6.7x more compute than Nvidia’s upcoming NVL144, and 30% more than xAI’s Colossus. 7. Tencent raised ¥9 billion in its first bond sale in four years—at ultra-low rates of 2.1%–3.1%. 8. Chery, China’s #1 car exporter, filed for IPO in Hong Kong. 👉 For more insights, join our Telegram channel: https://t.me/realDrWealth