China's big artificial intelligence (AI)-related companies used to use Nvidia from the United States, but the U.S. control over its exports makes it difficult for them to buy their own chips.
Nvidia once controlled about 90% of China's AI chip market. However, the U.S. Department of Commerce, out of concern about Chinese artificial intelligence chips, began to control its AI chips exported to China, including, in the fall of 2022, Nvidia's AI chip H100. Nvidia has begun exporting some of its lower-performing products to China to circumvent regulation, but because of new regulations last October, such products cannot be exported.
Nvidia intends to export its products to China, but because the U.S. Department of Commerce may introduce new controls in the future, Nvidia's chips are also at greater risk because the U.S. Department of Commerce may introduce new controls in the future. 
Tencent CEO Martin Lau once said that Nvidia has enough chips to develop more general-purpose models, so Tencent's AI capabilities will not be affected in a short period of time. However, in the future, it is necessary to seek local suppliers in China.
Some Chinese chip companies also saw Nvidia's failure in China, and it was a good opportunity, so they took measures. Haiguang Information Technology will provide the "Deep Computing No. 2" artificial intelligence chip to the world in the fall of 2023. Moore Threads Intelligent Technology also launched an artificial intelligence chip called "MTTS4000" at the end of 2023.
Against this wind, the degree of progress of Chinese companies in scientific and technological development will determine the future development of China's artificial intelligence industry.
The U.S. "Wall Street**" also said on February 26** that Chinese companies are busy stockpiling equipment and parts to produce chips. 
The report states:ChinaGreatamountpurchaseBuyYesOut ofVariousRationaleFirst, Chinese wafer makers are busy stockpiling equipment, especially lithography machines, in anticipation of tougher export controls from Western countries.
In the long run, China's investment in semiconductor production capacity remains a trend. China's high-end chip production has been curtailed by sanctions, but Chinese companies are working on more sophisticated technologies. SMIC, China's largest chip maker, said it would invest about $7.5 billion this year, about the same as last year.
China is trying to wean itself off its dependence on Western oil. Although it will take time for China to catch up in some important technologies such as lithography, Chinese manufacturers are still able to surpass Western counterparts in some markets. According to Bernstein Research**, the share of local Chinese manufacturers in China's chip production equipment market rose from 3% in 2018 to 29% in 2023 and is expected to reach 29% in 2026.