Nvidia(US:NVDA) Xin Lang Cai Jing·2025-10-18 23:26Core Viewpoint - China is leveraging the "DeepSeek" effect to accelerate its technological advancements in the chip and AI sectors, aiming to close the gap with the United States despite ongoing restrictions and challenges [1][6]. Group 1: Impact of U.S. Restrictions - U.S. restrictions on high-end chips have inadvertently stimulated a stronger desire for self-sufficiency among Chinese companies [1][4]. - The Biden administration's ban on exports of high-performance chips to China, initiated in October 2022, has been followed by further tightening of measures under the Trump administration [3][4]. - Despite these restrictions, Chinese companies are increasingly focusing on domestic products, believing that U.S. imports are only at an "entry-level" performance [4][6]. Group 2: Technological Advancements and Market Response - The "DeepSeek" project has generated significant confidence across China, leading to a surge in interest and investment in technology companies perceived as beneficial for China's advancement in AI [6]. - Notable examples include the stock price of domestic AI chip leader Cambricon, which quadrupled in 2024 and doubled again since summer, and Alibaba's announcement of a 380 billion yuan investment in AI infrastructure [6]. - The Chinese market is seen as an ideal environment for AI development due to its large population and high level of digitalization [5][6]. Group 3: Future Goals and Strategies - China aims to control nearly one-third of global wafer foundry capacity by 2030, reflecting a strategic push for self-sufficiency in semiconductor manufacturing [5][6]. - The Chinese government is providing substantial support for AI applications across various sectors, including manufacturing and logistics [5][6]. - The high quality of Chinese engineers is highlighted, with their ability to innovate under constraints, as demonstrated by the successful implementation of the MoE architecture in DeepSeek [5]. Group 4: Industry Perspectives - NVIDIA's CEO Jensen Huang expressed concerns about the U.S. policies that have led to a complete exit from the Chinese market, emphasizing the potential harm to U.S. interests [7][9]. - Huang noted that the U.S. should reconsider its approach, as restricting access to Chinese markets could allow competitors like Huawei to gain ground [9][10]. - The competitive landscape in AI is shifting, with China rapidly advancing and potentially challenging U.S. dominance in the sector [6][9].