China Pours Billions Into AI and Chip Race to Break U.S. Tech "Chokehold"

China Pours Billions Into AI and Chip Race to Break U.S. Tech "Chokehold" A massive, state-directed push is underway across China to achieve self-sufficiency in advanced semiconductors and artificial intelligence, aiming to break a Western technology blockade and secure the nation's technological future. Provinces and major cities are rolling out multi-billion dollar investment plans targeting these critical sectors, framing the effort as a strategic response to U.S. export controls [51155][43531][19492]. The eastern technology hub of Zhejiang announced a five-year plan focused on manufacturing cutting-edge AI chips as small as 3 nanometers, a direct effort to counter what experts call a U.S. strategic "chokehold" on China's access to the most advanced chip technology [51155]. Similarly, Shanghai's Pudong district launched a $10 billion investment plan this week, with the majority of funds directed into microchips and AI [43531]. These local initiatives are part of a coordinated national strategy. At least 22 provincial-level governments have published economic plans prioritizing the development of high-tech industries like semiconductors and AI, aligning with Beijing's directive for technological advancement and supply chain security [19492]. The focus extends to securing critical resources, with several regions pledging to increase production of rare earth elements—metals vital for electronics and defense technologies [19492]. Analysts note that China's approach to AI development is fundamentally government-led, concentrating on building foundational hardware like advanced chips to solve a critical shortage of computing power caused by restricted access to foreign technology [54934]. This contrasts with the United States, where AI growth is primarily driven by private sector companies [54934]. The drive comes amid an intensifying global rivalry in critical technologies. China is aggressively pursuing mastery of the entire semiconductor supply chain, fueled by billions in state funding, even as signals emerge that a future U.S. administration might consider relaxing some export controls [30085]. The outcome of this race is seen as having worldwide consequences, affecting everything from consumer electronics to economic and national security [30085][33059]. China Targets 3nm AI Chips to Break US "Chokehold" Shanghai Bets $10 Billion on Chips and AI in Tech Race Chinese Provinces Prioritize Tech and Self-Reliance in New Economic Plans US and China Take Opposite Roads in Global AI Race China's Chip Industry Races Forward as U.S. May Ease Grip