China bans foreign AI chips in state data centers

Technology Nov 07, 2025

China just told its state-backed data centers to stop using foreign-made AI chips—think NVIDIA, AMD, and Intel—in any project that's less than 30% finished.
Instead, they have to use homegrown chips only.
This is China's way of cutting back on foreign tech in important systems.

US chip giants face tough times ahead

This move is a big hit for US chip giants, especially NVIDIA, whose presence in China has dropped from almost total dominance to zero as of now.
It's all part of the ongoing tech standoff between the US and China: while Washington blocks advanced chip sales to China, Beijing's policy is enabling companies like Huawei and Alibaba to fill the gap.
The result? An even bigger divide in global tech—and a fast-growing Chinese chip industry trying to catch up.