Technological competition between the USA and China is not only a matter of economy, but also geopolitics. China strives to reduce dependence on the West by investing billions in the development of their own technologies. As BBC notes, if Beijing achieves success, this can change the balance of power on the global technology market and influence international relations.
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The Chinese company Deepseek surprised the world by introducing a competitor for Chatgpt, which was created using a fewer advanced chips than American models. In turn, Huawei presented his most powerful chips and plans to undermine the dominance of Nvidia in three years. Alibaba has announced a system that can match the efficiency of American semiconductors, consuming less energy.
“It is a lively entrepreneurial, technologically advanced, modern industry,” said Huang about the Chinese technology sector, whose words are cited by the BBC. He added that The US must compete “for their survival”emphasizing that China is catching up quickly.
China “nanoseconds” for the USA. They want to break the dominance of Nvidia
The Chinese government actively supports the development of the semiconductor sectororganizing fairs and encouraging local companies to use native technologies. According to BBC, Chinese companies such as Metax or Cambricon Technologies are also intensifying their activities.
Metax provides advanced chips for China Unicom, and Cambricon Technologies has noted an increase in the value of shares on the Shanghai stock exchange, which indicates the growing trust of investors. Tencent, The owner of the popular Wechat application also declared an increase in the use of local chipsresponding to the government's call.
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China treat technological development as a “bargaining card” in negotiations with the USA. Beijing wants to put a pressure on Washington to alleviate export restrictions. At the same time, Chinese companies are working intensively to reduce dependence on American technologies.
As BBC emphasizes, despite the next progress, China still does not have such developed supply chains as the USA, South Korea or Taiwan. In addition, American export restrictions, such as NVIDIA chip access lock, slow down the development of Chinese technologies.
