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.
Indrani Priyadarshini is a journalist and editorial professional specialising in technology, artificial intelligence, smart cities, green energy, and digital transformation. With over four years of experience in tech journalism and digital media, she is known for turning complex industry developments into clear, engaging, and insightful stories. Her expertise spans reporting, editorial strategy, digital publishing workflows, and in-depth coverage of emerging technologies shaping the future. She has also conducted high-profile interviews and podcasts with industry leaders, bringing sharp analysis and accessible storytelling to a wide audience.
