Source: Global Times

The Hong Kong-based Diansin Daily published an article on May 21st with the original title: "Chip Restrictions Expose U.S. Technonationalist Bullying; China's Rise in AI is Futile." Nvidia CEO Jensen Huang recently said that "America's AI export restrictions targeting China have failed," echoing the sentiments of industry analysts for a long time: Washington's technonationalism has backfired. Strict semiconductor restrictions have not only failed to curb China's technological rise but have instead spurred Beijing's determination to dominate AI. This misjudgment stems from the illusion in Washington that it will always remain dominant, now threatening America's own economic interests while solidifying China's path toward chip sovereignty.

The Biden administration issued advanced chip export bans in 2023 under the slogan of national security protection, but in reality, it weaponized trade. This move was seen as unilateral bullying undermining global semiconductor stability. Washington exposed its concerns: despite facing Western headwinds, China's plans for self-reliance in semiconductors are succeeding. Relevant data highlights this point: under American restrictions, Nvidia's market share in China has plummeted from once 95% to 50% today.

Washington's myopic strategy overlooks three realities: first, China's vast domestic market ensures that any vacuum left by American companies will be filled by local innovators; second, Beijing's substantial research and development investments have spawned entities like the National Integrated Circuit Industry Investment Fund to support domestic chip manufacturers; third, AI development depends not only on hardware but also on the originality of algorithms — in this area, Chinese researchers publish far more top-tier papers than their American counterparts.

The collateral damage to U.S. companies from chip restrictions is evident. Under Washington's ban, Nvidia's estimated revenue loss for 2024 is $12 billion. Advanced high-performance chips custom-made by AMD for China are now gathering dust in warehouses after export licenses were denied by (U.S. authorities). A senior Nvidia engineer stated, "Our market share is slipping to Huawei and Bitmain because Washington's policies treat innovation as contraband."

In response to U.S. suppression, China has not retaliated but has accelerated projects related to Chinese standards, prioritizing indigenous semiconductor intellectual property and AI infrastructure. Meanwhile, China has allocated funds to upgrade traditional chip foundries to ensure continued global competitiveness for traditional processors still crucial for electric vehicles and IoT. These measures, coupled with anti-dumping investigations on U.S. chemical imports vital to chip manufacturing, indicate Beijing's determination to break free from Western supply chains without disrupting global market stability.

Despite U.S. pressure, South Korean semiconductor exports to China grew by 18% in the first quarter of 2025, and ASML exporting deep ultraviolet lithography machines to SMIC highlights Europe's reluctance to abandon lucrative contracts. Even TSMC, which manufactures chips for U.S. clients, defies American sanctions and expands operations at its Nanjing wafer fabrication plant. These actions implicitly acknowledge that decoupling from China equates to economic suicide.

China recently released regulations implementing the Anti-Foreign Sanctions Law of the People's Republic of China, legally building a defense system against external sanctions. Simultaneously, China has cumulatively cultivated over ten thousand specialized "little giant" enterprises to ensure resilience in the face of Western sanctions. History proves that containment breeds innovation. The tighter Washington tightens its grip, the faster China masters core technologies.

Washington's chip war has not isolated China but has instead united public and private sectors in launching a modern self-strengthening movement. As China's AI patents grow rapidly each year, the proportion of domestically produced chips is increasing. China's development trajectory mirrors its nuclear program and space program — once overlooked, it now leads global standards. (Translated by Xin Bin)

Original source: https://www.toutiao.com/article/7507404000757580322/

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