China Sets Sights on Overcoming AI Chip Hurdles
Chinese President Xi Jinping has underscored the nation's urgent need to achieve self-reliance in artificial intelligence (AI) development, especially in core technologies such as high-end AI chips and software, as Beijing faces mounting restrictions from the United States. Speaking at a recent quarterly Politburo meeting, Xi urged intensified research and development to overcome critical bottlenecks and to build a fully autonomous AI ecosystem[1][3].
US-China Trade Tensions Raise the Stakes
The heightened drive for independence in AI comes as the world's two largest economies remain locked in a deepening trade dispute. Following sweeping US tariffs—reaching up to 145 percent on many Chinese goods—and retaliatory Chinese import duties, technology transfer and semiconductor access have become major sticking points.
AI Sector Becomes Strategic Battleground
- China has made AI a central pillar of its economic and strategic ambitions, aiming for global leadership in the sector.
- The US lead in generative AI models exemplified by
ChatGPT has led to rapid responses from Chinese firms. Notably, Chinese startup DeepSeek's R1 chatbot has matched US competitors’ performance at a lower cost.
- Xi acknowledged that, despite progress, significant "gaps" remain and pushed for "self-reliance" to close them[1][3].
Political Support and Economic Levers
President Xi emphasized that national policies—spanning intellectual property, taxation, public procurement, and infrastructure development—must support the quest for technological independence. Political backing, he said, is "essential" to mobilize resources and foster collaboration between government and industry[1].
‘Made in China 2025’ and the Path to Supremacy
This intensified focus is in line with China's ongoing
Made in China 2025 initiative, which targets 70 percent self-sufficiency in high-tech industries by 2025 and global leadership by 2049. Key sectors include AI, next-generation IT, advanced robotics, and semiconductors—which remain a core vulnerability, as China supplies only a fraction of its own chip demand[5].
Outlook: Policy, Innovation, and Global Competition
Xi’s remarks signal a doubling-down on domestic innovation as Western curbs on advanced technology tighten. While Chinese AI firms like DeepSeek and
ChatGPT rivals gain ground, high-end chip production is still a challenge the nation must "overcome" to fulfill its ambitions for technological supremacy[2][3].
The coming years are poised to see China intensify investments and policies to achieve AI self-reliance, marking the AI and semiconductor sectors as focal points in global economic and strategic rivalry.
