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The US has held sway over the global technology market for many years. But, China aims to transform that situation.

The nation is investing huge amounts of money into AI technologies and automated systems. Importantly, Beijing is also channeling significant funding toward developing the high-end chips that drive these state-of-the-art technologies.

Recently, Jensen Huang warned that the Chinese semiconductor industry was just "nanoseconds behind" the American tech sector in chip development.

So, will China rival American technology and break its dependence on imported high-end chips?

After DeepSeek

China's DeepSeek sent shockwaves through the tech world in 2024 when it introduced a competitor to the widely-used AI chatbot.

The announcement by a relatively unknown startup was remarkable for multiple factors, not least because the firm stated it required less funding to develop than leading AI models.

Reports indicated to have been developed using significantly less high-end chips than its rivals, and its release briefly reduced Nvidia's market value.

Moreover, advancement in the Chinese technology industry has continued. This year, some of the country's leading technology companies have declared that they intend to compete with the AI chip leader and emerge as the main advanced chip suppliers for local companies.

Earlier this year, Chinese state media reported that a recently unveiled processor introduced by the tech giant Alibaba can equal the capabilities of Nvidia's H20 chips while using less energy. H20s are scaled-down chips designed for the China under American trade restrictions.

Huawei also introduced what it called its strongest processors to date, along with a multi-year strategy to contest Nvidia's dominance of the artificial intelligence sector.

This major firm also announced it would make its blueprints and computer programs available to the general audience in the country in an effort to draw companies away from their reliance on US products.

Other Chinese chip developers have also secured significant deals with big businesses in the nation. MetaX is providing advanced chips for entities like government-run telecommunications firm a major Chinese carrier.

Another highly anticipated possible competitor to the chip giant is Beijing-based Cambricon Technologies.

The company's stock have more than doubled in value over the last three months as market participants speculate that it will profit from Beijing's push for domestic companies to use domestically made high-end chips.

Tencent, which operates the super app WeChat, is another prominent technology leader that has heeded the government’s call to use domestic processors.

Additionally, there has been no shortage of government-supported events, promoting Chinese technology companies in a effort to draw in investors.

"The competition has clearly emerged," a spokesperson for Nvidia stated in reply to queries about the recent progress made by China's semiconductor companies.

"Users will choose the best technology stack for operating the world's most popular business software and open-source models. We will continue to work to earn the trust and backing of leading programmers everywhere."

However, certain analysts have cautioned that assertions made by Chinese chipmakers should be viewed skeptically due to a absence of open information and consistent testing benchmarks.

China's semiconductors perform similarly to the American chips in predictive AI but lag behind in advanced data processing, said tech expert a researcher, who has evaluated both processors from the US and China.

"The difference is clear and it is surely narrowing. But, I don't think they will close it in the near future."

Where China Leads - and Lags

On a technology and business podcast in last month, Nvidia's Jensen Huang emphasized the advantages of China's tech sector, attributing its hardworking and vast workforce, intense local rivalry and advancements in semiconductor production.

"This is a vibrant entrepreneurial, advanced, modern industry," he remarked, urging the United States to compete "to maintain its position."

His assessment is expected to be welcomed by officials in the Chinese capital.

China has consistently aimed to become a worldwide frontrunner in technology, in part to lessen its dependence on the West.

Over time, China has poured significant resources into what the country's leader calls "advanced growth", which includes sectors from clean energy to AI.

Even before US President Donald Trump's return to the US presidency, China had allocated tens of billions of USD as part of its efforts to transform its vast economy from the "world's factory" for standard goods to a home of advanced sectors.

A continuing trade dispute with Trump's America has only made that mission more pressing.

Xi has pledged to make his nation more independent and not rely on "anyone's gifts."

The Nvidia CEO has also cautioned that the US should engage in open commerce with China or face the possibility of giving it the edge in the AI race.

This occurs against a backdrop of Chinese authorities applying more scrutiny on Nvidia as it launched an anti-monopoly probe into the company last month.

However, the government-directed strategy can also be an barrier to innovation if everyone in the sector only concentrates on a "common objective", said academic expert a technology scholar from National Taiwan University.

This may make it harder for disruptive ideas to break the mould, she commented.

China's chip industry has also not fully addressed concerns that its offerings can be more challenging to use than those of Western rivals like the industry leader.

The Professor believes these challenges can soon be solved by the large quantity of talented technology professionals.

"One should not underestimate China's ability to catch up."

'Bargaining Chip' for China

The expert characterized the latest reports from China about the semiconductor industry as a "bargaining chip" in its extended tariffs negotiations with the US.

Beijing aims to pressure Washington into providing its high-tech tools or risk its position in such a significant economy, stated Dr Jawad.

These announcements project capability on China's part, even though it is {