China has taken a bold step toward technology self-reliance, placing locally produced AI chips from Huawei and Cambricon on its official government procurement list for the first time.

This shift aims to reduce dependence on U.S.-based AI processors as policymakers promote domestic semiconductor adoption across ministries and state enterprises — a key plank of the “Xinchuang” strategy supporting national tech independence.

According to multiple reports, the decision comes amid U.S.-China tensions over high-end AI chip access and follows recent U.S. export policy changes concerning Nvidia’s advanced H200 chips. The move could generate billions in sales for Chinese chipmakers and signal how AI hardware is becoming a strategic economic asset.

Growing domestic AI hardware capability may reshape global supply chains and accelerate competitive pressures in AI computing infrastructure.