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The US has controlled the global technology market for decades. But, the World's Second Largest Economy aims to transform that landscape.

This economic powerhouse is investing huge amounts of money into AI technologies and robotics. Significantly, Chinese authorities is also channeling significant investment toward producing the high-end chips that drive these innovative technologies.

Last month, Nvidia's CEO cautioned that China was just "close behind" the US in chip development.

Therefore, can China equal US innovations and reduce its reliance on foreign advanced processors?

After DeepSeek

China's DeepSeek made headlines through the global technology community in last year when it unveiled a alternative to the widely-used AI chatbot.

The announcement by a relatively unknown startup was remarkable for multiple factors, including because the company claimed it was more economical to develop than top artificial intelligence systems.

It was said to have been developed using far fewer high-end chips than its rivals, and its release temporarily sank Nvidia's market value.

And, progress in the Chinese technology industry has persisted. This year, some of the country's major tech firms have made it clear that they intend to challenge Nvidia and become the primary advanced chip suppliers for domestic firms.

Earlier this year, official sources reported that a recently unveiled processor introduced by Alibaba can match the capabilities of Nvidia's H20 chips while being more efficient. H20s are adjusted chips designed for the Chinese market under American trade restrictions.

Huawei also revealed what it called its most powerful chips ever, along with a three-year plan to challenge Nvidia's dominance of the artificial intelligence sector.

The Chinese tech giant also stated it would make its designs and computer programs available to the general audience in the country in an attempt to attract companies away from their dependence on American technology.

Additional semiconductor firms in China have also landed significant deals with big businesses in the country. MetaX is providing advanced chips for organizations like state-owned telecoms operator a major Chinese carrier.

Another hotly-tipped potential challenger to Nvidia is headquartered in Beijing a rising semiconductor firm.

Its Shanghai-listed shares have surged in value over the recent quarter as market participants speculate that it will profit from Beijing's push for Chinese firms to use locally produced high-end chips.

Tencent, which operates the all-in-one platform WeChat, is an additional prominent tech giant that has responded to the government’s call to use Chinese chips.

Additionally, there has been no shortage of state-backed events, showcasing domestic tech firms in a effort to attract investors.

"The competition has clearly emerged," a spokesperson for Nvidia commented in response to questions about the latest developments made by China's semiconductor companies.

"Users will choose the best technology stack for operating the world's most popular commercial applications and publicly available AI systems. We'll persist in our efforts to gain the confidence and backing of leading programmers worldwide."

Yet, certain analysts have cautioned that assertions made by Chinese chipmakers should be taken with a pinch of salt due to a absence of open information and consistent testing benchmarks.

Chinese processors perform similarly to the US in forecasting applications but fall short in complex analytics, noted computer scientist Jawad Haj-Yahya, who has tested both American and Chinese chips.

"The difference is clear and it is surely narrowing. However, I don't think they will close it in the near future."

China's Strengths and Weaknesses

On a technology and business podcast in September, the CEO of Nvidia emphasized the strengths of China's tech sector, attributing its dedicated and large talent pool, fierce local rivalry and progress in chipmaking.

"It represents a vibrant innovative, advanced, contemporary sector," he said, urging the US to compete "for its survival."

His assessment is likely to be received positively by authorities in Beijing.

The country has long vied to become a worldwide frontrunner in technology, partly to reduce its dependence on the Western nations.

For years, the nation has invested heavily into what President Xi Jinping calls "high-quality development", which covers industries from renewables to artificial intelligence.

Prior to US President Donald Trump's return to the US presidency, China had allocated tens of billions of dollars as part of its efforts to shift its large economic system from the "global manufacturing hub" for standard goods to a home of cutting-edge sectors.

A continuing trade dispute with Trump's America has only made that mission more urgent.

Xi has pledged to make his country more independent and not depend on "anyone's gifts."

Mr Huang has also cautioned that the US should engage in open commerce with the Asian nation or face the possibility of handing it the advantage in the artificial intelligence competition.

This comes against a backdrop of Beijing exerting more scrutiny on the chip maker as it initiated an anti-monopoly probe into the company recently.

But, China's state-led approach can also be an barrier to innovation if everyone in the industry only concentrates on a "shared goal", noted computing professor a technology scholar from a leading educational institution.

This may make it harder for innovative concepts to break the mould, she commented.

The Chinese semiconductor sector has also not fully addressed concerns that its offerings can be more challenging to use than those of competitors from the West like the industry leader.

Prof Yang believes these challenges can soon be resolved by China's huge number of talented technology professionals.

"One should not underestimate the capability of China to catch up."

'China's Negotiating Tool

She characterized the latest reports from China about the semiconductor industry as a "negotiating tool" in its months-long tariffs negotiations with the US.

Chinese officials seeks to compel Washington into providing its advanced equipment or risk its standing in such a large market, said the analyst.

Such reports demonstrate capability on China's part, even though it is {