China Mobilizes to Overcome US Chip Supply Restrictions

Beijing's strategic push for self-reliance in AI challenges US efforts at technological containment

Published on Feb. 25, 2026

Got story updates? Submit your updates here. ›

As the US imposes export restrictions on advanced chips, China is responding with a comprehensive state-driven approach that integrates subsidies, innovations, and strategies to circumvent sanctions. This includes developing domestic alternatives across the AI stack, leveraging trailing-edge production, and employing layered supply chain tactics to sustain its computing capabilities and secure its AI future.

Why it matters

Control over GPUs and advanced computing has become central to national security threat perceptions, shaping the future of the US-China chip rivalry. China's technological strategy has moved beyond exploiting gaps towards more systematic responses, posing challenges to US efforts at technological containment.

The details

China has instructed major tech firms to cease purchasing Nvidia chips, positioning domestic companies like Huawei and SMIC at the forefront of GPU development. Beijing is also barring the use of foreign chips in state-led data center projects and critical infrastructure. These measures signal a strategic push towards self-reliance in AI through initiatives like the Yizhuang AI Zone, which aims to develop Nvidia-free AI infrastructure by 2025. China is also developing domestic alternatives across the AI stack, such as Tsinghua University's Chitu AI inference framework.

  • On September 17, 2025, China's Cyberspace Administration instructed major tech firms to cease purchasing Nvidia chips.
  • In November 2025, authorities barred the use of foreign chips in state-led data center projects and critical infrastructure.
  • In 2023, Huawei and SMIC achieved a significant milestone by producing 7nm chips, demonstrating China's ability to reach critical technological thresholds despite restrictions.

The players

Cyberspace Administration of China

The Chinese government agency that instructed major tech firms to cease purchasing Nvidia chips.

Alibaba

A major Chinese technology company that was instructed to stop purchasing Nvidia chips.

Tencent

A major Chinese technology company that was instructed to stop purchasing Nvidia chips.

Huawei

A Chinese technology company that has developed its own Ascend series of AI chips to partially fill the gap left by Nvidia's restricted exports.

Semiconductor Manufacturing International Corporation (SMIC)

A Chinese semiconductor manufacturer that has been compelled to push deep ultraviolet (DUV) technology to its limits to continue competing with Nvidia.

Got photos? Submit your photos here. ›

What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.