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Significance China is working hard to boost its domestic AI chip industry in response to US restrictions. The support significantly impacts the development of its entire AI sector, the transformation of its industrial structure and the dynamics of Chinese-US technology rivalry. Impacts Chinese firms will purchase more domestic AI chips given the risk of further tightening of US-led Western restrictions. The global competitiveness of China's AI chips will be limited by security concerns and US, Taiwanese and Korean firms’ technological edge. Chinese chipmakers’ international presence is likely to rise, especially in emerging markets and less-developed economies.
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