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Home » China circumvents US veto and becomes an AI powerhouse using US chips

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China circumvents US veto and becomes an AI powerhouse using US chips

Halabeth Gallavan
Halabeth Gallavan
January 27, 2025
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In recent years, China has established itself as one of the world’s great powers in artificial intelligence (AI). However, this path to success has not been without its challenges, especially when it comes to trade and technology tensions with the United States. Recently, China has demonstrated an impressive ability to circumvent US vetoes, which have sought to restrict the Asian nation’s access to technologies essential to the development of its AI infrastructure. The key to this progress has been the use of US chips, which are still essential for the construction and operation of next-generation artificial intelligence systems.

The scenario of trade blockades and technological restrictions imposed by the United States has created an environment of uncertainty for Chinese entrepreneurs and researchers. However, instead of retreating in the face of obstacles, China has adopted a strategic approach to “circumvent” the US veto and continue its rise in the field of AI. The use of American chips has been a key part of this strategy, as these chips contain advanced technology that is difficult to replace or replicate quickly, even with China’s efforts to develop its own components.

One reason why China has been able to continue to make progress in the field of artificial intelligence despite trade barriers is its ability to adapt and innovate. Although the country has faced increasing pressure from the United States to cut off access to chips and other technological components, Chinese companies have begun to explore alternatives to circumvent these barriers. In addition, China has invested heavily in its own chip research and development, but it still relies heavily on semiconductors from American companies such as Nvidia, which are essential for training advanced AI models.

The relationship between China and the United States in the AI ​​sector has been characterized by fierce competition and a game of cat and mouse. While the United States seeks to ensure that China does not gain unfettered access to cutting-edge technology, China continues to find ways to circumvent these restrictions and continue its evolution as a technological powerhouse. One example of this is the use of Nvidia chips, which are sold with specific licenses so that they can be used in AI systems, allowing China to continue to expand its computing capacity and machine learning models.

By using US chips, China has managed to partially circumvent the difficulties imposed by US vetoes, but it is not completely free from these limitations. Trade sanctions and the technology war between the two powers still generate uncertainty in the global market. However, China’s strategy of seeking critical technologies, such as high-performance chips, and developing its own semiconductor industry has borne fruit. Chinese companies are increasingly able to compete with international technology giants, which further strengthens China’s position in the global AI scenario.

Another factor that has helped China become a powerhouse in AI, even with the limitations imposed by the US, is the large volume of data available in the country. China has a large population, and this means an immense amount of data is generated daily, essential for training artificial intelligence algorithms. This data is used to power AI systems in areas such as facial recognition, self-driving cars, e-commerce and financial services, making the country a leader in a variety of AI-based technology applications.

In addition, the Chinese government has been instrumental in supporting the development of AI in the country, offering financial incentives, favorable public policies and creating an environment conducive to the growth of technology companies. The combination of public and private investment has been crucial to China’s advancement in AI, allowing the country to overcome technological limitations and become one of the leading nations in the field of artificial intelligence, despite obstacles imposed by the US.

In conclusion, China has shown itself to be a resilient and strategic power, capable of overcoming US vetoes to continue its rise in artificial intelligence. By using US chips while simultaneously investing in the development of its own technological solutions, the country has secured its prominent position in the global AI scenario. Although the path has not been easy, the combination of adaptation, innovation and government support has allowed China to become an unbeatable power in the artificial intelligence sector, overcoming barriers imposed by its international rivals.

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