By Atoyebi Nike
China’s race with the United States for dominance in artificial intelligence has entered a more intense phase as Shanghai launched a 1 billion yuan ($139 million) subsidy programme to boost its AI industry. The funding will support computing power, discounted AI models, and data procurement, with up to 500 million yuan earmarked for new research institutions.
Other Chinese cities like Hangzhou, Shenzhen, and Beijing are also rolling out AI support, highlighting a nationwide strategy to build domestic capabilities and reduce dependence on US technology.
Meanwhile, the Trump administration announced a new AI Action Plan on July 23, reinforcing export restrictions and aiming to strengthen US AI infrastructure. The plan includes measures to prevent sensitive technology from reaching countries like China.
Despite these curbs, China’s domestic AI chipmakers are gaining ground. Analysts at Bernstein estimate that Chinese chips could make up 55% of the country’s AI accelerator market by 2027, up from 17% in 2023. Huawei’s Ascend 910C, for example, now performs at about 65% of Nvidia’s top-tier H100 chip.
Experts say both countries are adopting different approaches China investing heavily in self-reliance, the US tightening controls to shape the future of AI. But with talent, algorithms, and infrastructure still in flux, the final outcome of this global tech rivalry remains uncertain.
