China expands tech replacement drive to include AI chips amid US curbs

May 27, 2026 - 12:48

China has widened its campaign to replace foreign technology with home-grown alternatives, now including artificial intelligence processors in its official certification system. The updated list extends the country's trusted technology framework to cover AI chips, signaling a strategic shift as Beijing accelerates efforts to reduce reliance on overseas suppliers.

This move comes as the United States continues to tighten export controls on advanced semiconductors and chip-making equipment to China. By adding AI processors to the certification list, Beijing aims to encourage state-owned enterprises and key industries to adopt domestically produced chips, even if they lag behind foreign counterparts in performance.

The expanded list is part of a broader push to achieve self-sufficiency in critical technologies, from operating systems to database software. Analysts say the inclusion of AI chips reflects growing urgency in China's tech sector, where access to advanced processors from companies like Nvidia has become increasingly restricted.

While the certification system is not legally binding, it carries significant weight in procurement decisions for government and state-linked projects. Companies that fail to use certified domestic chips may face difficulties winning contracts or securing subsidies.

The move also highlights the deepening tech rivalry between Washington and Beijing, with both sides taking steps to protect their semiconductor industries. For China, the challenge remains whether domestic chipmakers can scale up production and improve performance fast enough to meet demand from AI developers and data centers.