A person walks past a display of an Atlas 900 AI cluster at the Huawei stand during the World Artificial Intelligence Conference at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025.BEIJING — Chinese telecommunications giant Huawei announced Thursday new computing systems for powering artificial intelligence with its in-house Ascend chips, as it steps up pressure on U.S. rival Nvidia.The company said it plans to launch its new "Atlas 950 SuperCluster" as soon as next year.The U.S. h ...

Core Viewpoint - The U.S. government is imposing restrictions on the sale of electronic design automation (EDA) software to China, aiming to suppress China's advancements in chip technology [1][4]. Group 1: U.S. Government Actions - The U.S. Department of Commerce has sent letters to major EDA companies, including Synopsys and Cadence, requesting them to halt shipments to Chinese clients [1]. - The impact of these restrictions on the EDA companies is uncertain, but it may lead to a prohibition of their operations in China [1]. - Synopsys derives 16% of its revenue from China, while Cadence has approximately 12% of its business in the region [1]. Group 2: Market Reactions - Following the news of the restrictions, Cadence's stock fell by 10.7%, marking its largest single-day drop since March 2020, while Synopsys' stock dropped by 9.6% [1]. Group 3: Industry Implications - EDA software is crucial for chip design, allowing designers to develop and test next-generation chips, and is considered a key component of the semiconductor supply chain [5]. - The restrictions could hinder the ability of U.S. companies to provide technology to Chinese chip manufacturers, potentially impacting ongoing trade negotiations [4]. Group 4: AI and EDA Development - Chinese EDA companies are rapidly adopting AI technologies to enhance chip design processes, which may lead to significant advancements in the industry [7][8]. - AI can optimize EDA tools, improving design efficiency and accuracy, thus transforming the EDA sector [7]. Group 5: Chinese Government Response - The Chinese government has criticized the U.S. for its export control measures, claiming they harm Chinese companies and threaten global semiconductor supply chain stability [8][9].

Investment Rating - Industry investment rating: Leading the market [4][9] Core Insights - The U.S. Department of Commerce announced the withdrawal of the AI Diffusion Rule, introducing new measures to strengthen semiconductor export controls globally. This includes restrictions on the use of Huawei's Ascend chips and U.S. AI chips for training and inference of Chinese AI models, which is expected to increase demand for NVIDIA chips [8] - The adjustment in U.S. chip export policy is anticipated to boost demand for NVIDIA chips while simultaneously increasing the urgency for China's self-sufficiency in the AI industry [8] - Investment recommendations include focusing on companies related to NVIDIA, such as Huadian Co. and Shenghong Technology, as well as domestic technology chains like Shenzhen Nanyan Circuit [8] Summary by Sections Industry Performance - Electronic industry performance over different time frames: - 1 Month: +3.51% - 3 Months: -5.59% - 12 Months: +35.65% - Comparison with the CSI 300 index: - 1 Month: +5.14% - 3 Months: +0.97% - 12 Months: +7.60% [6] Recent Developments - The U.S. government is expected to announce agreements with Saudi Arabia and other countries to allow access to semiconductor chips, which may further influence the market dynamics [8]

Group 1 - The Chinese government emphasizes strengthening the domestic circulation as a strategic move to promote stable and sustainable economic growth, aiming for high-quality development [1] - The State Council has issued guidelines for urban renewal, focusing on the renovation of old neighborhoods, factories, and villages, with eight main tasks outlined [1] - The People's Bank of China and other departments are committed to supporting technological innovation by encouraging financial institutions to increase loans for tech enterprises [1] Group 2 - Alibaba reported a 7% year-on-year increase in revenue for Q4 of fiscal year 2025, reaching 236.45 billion yuan, with a 22% increase in non-GAAP net profit to 29.847 billion yuan [1] - NetEase announced a 7.4% year-on-year increase in net revenue for Q1 of 2025, amounting to 28.8 billion yuan, with a net profit of 11.2 billion yuan compared to 8.5 billion yuan in the same period last year [1] Group 3 - The China Securities Regulatory Commission has introduced new regulations for the supervision of funds raised by listed companies, emphasizing the dedicated use of funds to support the real economy [1] - The Supreme Court and the CSRC have issued guidelines to ensure fair enforcement of laws and judicial services to support the high-quality development of the capital market [1]

Group 1 - The article discusses China's response to U.S. export controls on semiconductor products, emphasizing the need for mutual cooperation and the potential negative impact of unilateral actions on global supply chains [2][3][4] - It highlights that the U.S. has intensified restrictions on Chinese chip products, which is seen as a violation of market principles and detrimental to the interests of Chinese enterprises [3][4] - The Chinese government is considering adjustments to its own export controls in response to the U.S. actions, indicating a potential shift in trade relations [2][4] Group 2 - The article mentions that some Chinese rare earth material producers have already obtained export licenses, suggesting a possible easing of restrictions [2] - It also notes that the Chinese government is committed to taking necessary measures to protect the legitimate rights of its enterprises against U.S. actions [4] - The overall sentiment reflects a call for the U.S. to correct its unilateral measures to foster a more sustainable and mutually beneficial trade environment [4]