Chinese Developed Own AI Chip US-China Trade War Set to Intensify

China’s AI Chip Move Shows Trade War Is Far From Over

US-China Trade War is emerging like fire in forest. Huawei Technologies from China is getting ready to test its new and powerful  processor. They want it to compete with high-end chips from the American company Nvidia, according to the Wall Street Journal. Huawei has talked to some Chinese tech companies about testing this new chip, named the Ascend 910D. 

The report says that Huawei hopes this chip will be stronger than Nvidia’s H100. They expect to get the first samples of the chip by late May. Earlier versions of this chip are called 910B and 910C. The people who know about this say that it is still being developed and will need several tests to check how well it works before selling it to customers. Reuters reported that Huawei plans to start sending out its advanced 910C AI chip to Chinese customers as soon as next month.

Nvidia, a big company that makes computer chips, is in the middle of trade war and technology issues between the US and China. On Thursday, Nvidia's CEO, Jensen Huang, went to Beijing to talk with top Chinese officials, right after the trade war US set new rules on exporting its chips. 

Why is Nvidia important in the competition for AI technology between the US and China?  

There is increasing demand for Nvidia's H20 chips among Chinese technology companies such as Tencent, Alibaba, and ByteDance, the parent company of TikTok.  Those companies have outstanding orders for the AI chips. Washington hopes the new export controls will slow China's development of advanced AI chips - especially their use by the Chinese military - and secure an advantage in AI chip competition with Beijing.

But because there is no grace period on the imposition of the new curbs, Nvidia expects to be hit by losses of $5.5bn (£4.15bn) from these orders that it can no longer fulfil.

How Will the Crypto Market Get Affected?

The ban on Nvidia chip exports has not only affected NVDA Coin but also led to a broader reassessment of AI-related investments in the crypto space. This development has immediate implications for the cryptocurrency market, particularly for AI-related tokens such as Nvidia's own cryptocurrency, NVDA Coin, and other AI-focused cryptocurrencies. This volatility presents both risks and opportunities for traders, particularly those engaged in high-frequency trading of AI-related tokens.

How will export controls affect US-China competition? 

These controls are part of the US plan to reduce reliance on China for advanced technology and to bring more semiconductor production back to the US.  

Recently, Nvidia said it will invest up to $500 billion to build AI servers in the US. President Donald Trump claimed that his re-election influenced Nvidia's choice.  

In March, TSMC, a major chip maker from Taiwan that produces Nvidia's chips, announced it would invest an extra $100 billion in new manufacturing in Arizona.  

These recent events show that global technology is becoming more divided between the US and China. Due to this technology will be less global and will face more restrictions.

When will the US-China Trade War Going To End

The world’s two largest economies have slapped record tariffs on each other in a swiftly escalating war that has roiled global markets, disrupted supply chains and stoked recession fears. Trade standoff between Washington and Beijing is not sustainable, US Treasury Scott Bessent says, predicting tit-for-tat tariff war would de-escalate soon.