China Advances AI Despite U.S. Chip Restrictions

In 2017, China unveiled an ambitious plan to dominate artificial intelligence (AI) by 2030. However, the U.S. export controls on advanced chips, introduced in 2022, aimed to hinder China’s progress by restricting access to the semiconductors critical for training AI models. Despite these challenges, China has made significant strides in AI, narrowing the gap with the U.S.

In November 2024, Alibaba and DeepSeek launched reasoning models rivaling OpenAI’s systems, while Tencent unveiled Hunyuan-Large, which outperformed leading U.S. open-source models. DeepSeek further cemented China’s position with its December release of DeepSeek-v3, the top-ranked open-source AI model globally.

Former Google CEO Eric Schmidt, once confident in the U.S. lead, acknowledged in late 2024 that China’s rapid progress was “shocking.” These advancements highlight China’s ability to overcome chip shortages through stockpiling and alternative sourcing, including offshore cloud rentals and alleged smuggling.

China’s progress reflects its strength in data access, innovative algorithms, and a vast pool of AI talent. However, advanced semiconductors remain a challenge due to U.S.-led restrictions and the dominance of companies like Nvidia and TSMC in chip manufacturing.

As AI continues to shape global economic and military power, the competition between China and the U.S. intensifies. While the U.S. introduces stricter measures to curb China’s access to chips, China’s advancements suggest that export controls alone may not be enough to maintain the U.S. edge in AI.

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Sources: AirGuide Business airguide.info, bing.com, etc