Nvidia chips extend China's tech independence
Nvidia faces a significant decline in its market share in China, decreasing to 34% in the first half of 2026 compared to 66% in 2024, due to U.S. restrictions on chip exports. China is trying to phase out Nvidia chips and boost reliance on domestic companies like Huawei, whose market share has risen to 28%. However, quality gaps and product shortages remain obstacles to fully depending on Chinese chips for high-value AI tasks. Despite Beijing’s efforts to halt imports of foreign chips and develop local manufacturing, deficiencies in quality and quantity continue to hinder achieving complete self-sufficiency in the advanced technology sector.
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