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China’s Strategic Push in AI and the Broader Economic Context

China's Massive Investment in AI: A Strategic Power Play

China has officially committed vast resources to outpace global rivals in artificial intelligence. Recent reports from the UK-based Financial Times reveal that Chinese local governments, especially in energy-rich provinces, are now offering substantial subsidies to make domestic AI chips more competitive. Specifically, data centers that exclusively utilize Chinese-made chips—such as Huawei’s Ascend series and Camracon’s processors—can reduce electricity costs by up to 50%. Centers using foreign hardware like Nvidia are explicitly excluded from these benefits, underscoring Beijing's aggressive push to support its domestic chip ecosystem.