Leashing Chinese AI Needs Smart Chip Controls

Firms don’t want Huawei’s domestically produced alternatives—but might have no choice.

Jensen Huang, co-founder and CEO of Nvidia, speaks during a news conference in Taipei. August 4, 2025, 11:31 AM Comment icon View Comments ( )

China’s stunning achievements in AI have one glaring weak spot: access to compute—the raw processing power that fuels AI and relies on large volumes of advanced semiconductors. The U.S. currently has a tenfold advantage over China in total compute capacity, a gap that may only widen over time. U.S. tech firms are pouring billions of dollars into new data centers and can reap the benefits of the latest chip advancements from Nvidia and AMD or their own self-developed AI chips.

Meanwhile, the performanc

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