China Accelerates Self-Reliance in AI With Chips and Large Language Models

What Happened

China is rapidly advancing its self-reliance ambitions in the artificial intelligence sector. According to analysis from the Mercator Institute for China Studies, the Chinese government is heavily supporting the development of domestic AI chips and large language models. This effort involves increased funding, policy incentives, and regulatory changes aimed at boosting homegrown semiconductor manufacturing while also fostering innovation from AI companies across China. The broader push is in response to intensifying US technology restrictions and a global race to dominate AI. Domestic firms are working to match and ultimately surpass Western AI products and infrastructures, reducing their reliance on American technology.

Why It Matters

China\’s drive for AI self-sufficiency could reshape the global technology landscape, push forward technological decoupling, and impact competitive dynamics among global AI leaders. Enhancements in local capability will affect international supply chains and the AI market. Read more in our AI News Hub