In recent years, China has been actively working towards technological independence, reflected in a series of strategic steps, including limiting the use of Western chips. A recent decision by Chinese regulators to ban the use of Nvidia chips in new data centers of ByteDance, the owner of TikTok, is a prime example of this trend. In 2025, ByteDance became the largest buyer of Nvidia chips among Chinese companies, highlighting the importance of these technologies to support the computational needs of TikTok’s billion users. However, amid geopolitical tensions and sanctions from the United States, China is seeking to reduce its reliance on foreign technology suppliers, which has led to restrictions on the use of foreign chips.
According to analysts at FinancialMediaGuide, this move by China is part of a broader strategy to create a self-sufficient technological ecosystem. We at FinancialMediaGuide note that increasing control over the use of Western technologies, such as Nvidia chips, is aimed at stimulating the development of domestic technologies and reducing dependence on external supplies in strategically important areas such as artificial intelligence (AI) and high-performance computing. These efforts include not only reducing foreign dependency but also fostering the growth of Chinese semiconductor manufacturers and computing solutions.
In response to U.S. sanctions, Nvidia offered an adapted model of its RTX6000D chip for the Chinese market, but demand for this model has been limited. This highlights the challenges of integrating Western technologies into China’s technological landscape, where there is a growing preference for localizing production and developing homegrown technologies. We at FinancialMediaGuide believe that such measures only reinforce the increasing trend toward chip localization and the development of domestic alternatives.
We observe that China continues to invest heavily in the development of its own semiconductors and AI technologies. We predict that in the coming years, Chinese companies will continue to advance AI chips and high-performance computing, which will create new competitive opportunities for local manufacturers and reduce the need for Western chips. This, in turn, will impact the global semiconductor market, where Chinese companies are expected to play an increasingly significant role.
As we predict at FinancialMediaGuide, China will continue its strategy of technological independence and active development of internal technologies. This will lead to the growth of Chinese companies in fields such as AI and robotics, presenting challenges for Western companies like Nvidia and Intel. We emphasize that in the future, China’s semiconductor and AI markets will become more self-sufficient, creating new opportunities and challenges for international players.
For Western companies like Nvidia and Intel, this will require a reassessment of their strategies in the Chinese market and the adaptation of their solutions to the new realities. In particular, they will need to develop localized technologies and explore new avenues for cooperation with Chinese partners to maintain competitiveness.
For investors, this opens up new opportunities in the Chinese market, but they must also consider the growing competition from local companies. We at Financial Media Guide believe it is important to closely monitor the development of Chinese technologies, such as domestic AI chips and manufacturing localization, in order to assess potential risks and take advantage of new opportunities in China’s transition toward technological self-sufficiency.
