China s AI industry is underestimated, export controls are anti-localization

Tech 7:59am, 12 September 2025 53

The US-China AI export control continues, and recent discussions have caused doubts about China's AI industry. Rush Doshi, director of China's affairs and senior deputy director of the Biden administration's National Security Conference, and Chris McGuire, a member of the Key Innovation Technology and National Security Officer, pointed out on the 2nd that China lacks the ability to maintain AI industry, but the latest market analysis shows that China has a chip production of nearly one million, indicating that China's determination to promote the localization of semiconductors.

Beijing has instructed the data center to distribute at least 50% of its computing power to domestic chips, aiming to strengthen local technical autonomy. China's source model has also been improving, and the development speed of crystal foundry has exceeded the forecast by Washington. On the contrary, export restrictions not only failed to limit Beijing, but instead promoted faster localization and independence.

People who support export control often confuse chip design companies and crystalline foundry manufacturers. Comparing Chinese semiconductor manufacturing with the United States and as a proof of the effectiveness of GPU regulation, it is no different from mixing Apple with Foxconn, KFC and Chicken Field. In the end product control does not mean control of production means. GPU export control not only punishes American companies, but also strengthens China's motivation to develop alternative ecosystems, and encourages companies such as Nvidia and AMD to enter the world's largest AI talent market.

The Great AI Export-Control Debate Continues