**Exclusive: China Bans Foreign AI Chips from State-Funded Data Centres, Sources Say**
*Reuters | 11/05/2025*
*Posted by SeekAndFind*
The Chinese government has issued new guidance requiring that all new data centre projects receiving any state funding must use only domestically-made artificial intelligence (AI) chips, according to two sources familiar with the matter who spoke to Reuters.
In recent weeks, Chinese regulatory authorities have ordered data centres that are less than 30% complete to remove all installed foreign chips or cancel plans to purchase them. Meanwhile, projects further along in development will have their cases reviewed individually, the sources said.
This directive may represent one of China’s most aggressive moves to eliminate foreign technology from its critical infrastructure. It comes amid a pause in trade hostilities between Washington and Beijing, as China pushes to achieve self-sufficiency in AI chip technology.
China’s access to advanced AI chips, including those produced by Nvidia, has been a major point of contention with the United States. Both countries are vying for dominance in high-end computing power and artificial intelligence.
U.S. President Donald Trump, in an interview aired on Sunday following talks with Chinese President Xi Jinping last week, stated that Washington will “let them deal with Nvidia but not in terms of the most advanced” chips.
However, Beijing’s latest move could dash Nvidia’s hopes of regaining market share in China. At the same time, it opens opportunities for local competitors, including Huawei, to secure increased sales of domestically-produced chips.
It remains unclear whether the new guidance applies nationwide or is limited to certain provinces, the sources added. They also did not specify which Chinese regulatory bodies issued the order, citing the sensitivity of the matter.
Besides Nvidia, other foreign chipmakers that sell data centre chips in China include AMD and Intel.
Requests for comment sent to the Cyberspace Administration of China and the National Development and Reform Commission—two of Beijing’s most powerful regulators—were not answered.
*Read more at reuters.com.*
—
**Topics:** Business/Economy, China, Foreign Affairs, News/Current Events
**Keywords:** AI, China, chips, datacenter
—
*Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright.*
—
**Support our work:**
– [Donate by Credit Card](#)
– [Donate by PayPal](#)
– Or by mail to:
Free Republic, LLC
PO Box 9771
Fresno, CA 93794
Thank you very much and God bless you.
https://freerepublic.com/focus/f-news/4350986/posts
