The growing emphasis on self-reliance in advanced technologies, including AI, has become a pressing concern for China's leadership. Chinese President Xi Jinping recently underscored the need for domestic innovation and development of cutting-edge technologies during a meeting with top officials.
This push for self-sufficiency is particularly evident in the country's response to growing competition in the AI industry. Beijing's efforts to reduce reliance on foreign technology are reflected in its imposition of a 125% duty on US imports, including those from companies like Nvidia and AMD.
Huawei Technologies is poised to test its new AI processor, the Ascend 910D, which could potentially disrupt the market and challenge Nvidia's dominance in high-end products. The company has also reached out to Chinese tech firms to assess the technical feasibility of integrating the chip into their systems.
The development of domestic AI capabilities is crucial for China's economic growth and technological advancement. By investing in research and development, Beijing aims to reduce its dependence on foreign technology and establish itself as a leader in the global AI market. Despite acknowledging gaps in the industry, Xi emphasized the importance of promoting self-reliance through policies such as intellectual property rights, taxation, and public procurement.