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America has controlled the global technology market for many years. But, China seeks to alter that dynamic.

The nation is pouring massive sums of money into artificial intelligence (AI) and automated systems. Importantly, Chinese authorities is also directing considerable funding toward producing the advanced semiconductors that power these state-of-the-art technologies.

Last month, Nvidia's CEO warned that China was only "nanoseconds behind" the American tech sector in processor advancement.

So, can Beijing rival American technology and end its dependence on foreign advanced processors?

After DeepSeek

China's DeepSeek sent shockwaves through the global technology community in last year when it unveiled a competitor to the widely-used AI chatbot.

The announcement by a relatively unknown startup was remarkable for several reasons, not least because the company stated it was more economical to develop than leading AI models.

Reports indicated to have been developed using far fewer advanced processors than its rivals, and its release caused a drop in the chip giant's stock price.

And, progress in the Chinese technology industry has continued. This year, some of the country's leading technology companies have declared that they intend to take on the AI chip leader and become the main high-end semiconductor providers for domestic firms.

In September, Chinese state media announced that a new chip developed by Alibaba can equal the capabilities of Nvidia's H20 semiconductors while using less energy. These processors are adjusted chips made for the Chinese market under US export rules.

Huawei also unveiled what it called its most powerful chips ever, along with a multi-year strategy to challenge Nvidia's leading position of the AI market.

This major firm also stated it would release its blueprints and computer programs available to the public in China in an effort to draw companies away from their reliance on American technology.

Other Chinese chip developers have also obtained significant deals with large corporations in the country. MetaX is providing advanced chips for entities like state-owned telecoms operator China Unicom.

Another highly anticipated possible competitor to Nvidia is Beijing-based Cambricon Technologies.

The company's stock have more than doubled in value over the last three months as investors bet that it will profit from Beijing's push for domestic companies to use locally produced advanced semiconductors.

The Tech Conglomerate Tencent, which operates the all-in-one platform WeChat, is an additional prominent tech giant that has heeded the official directive to use Chinese chips.

Additionally, there has been no lack of government-supported events, showcasing domestic tech firms in a effort to attract funding sources.

"The competition has undeniably emerged," an official from the chip maker stated in reply to queries about the recent progress made by Chinese chip firms.

"Customers will select the most effective solutions for operating the globally dominant business software and publicly available AI systems. We will continue to work to gain the trust and backing of mainstream developers everywhere."

However, certain analysts have warned 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 are comparable to the American chips in predictive AI but lag behind in advanced data processing, said tech expert Jawad Haj-Yahya, who has evaluated both American and Chinese chips.

"The difference is evident and it is surely shrinking. However, I don't think they will close it in the short-term."

Where China Leads - and Lags

During a technology and business podcast in September, the CEO of Nvidia emphasized the advantages of the Chinese technology industry, attributing its hardworking and vast talent pool, fierce local rivalry and progress in semiconductor production.

"It represents a dynamic innovative, high-tech, modern industry," he remarked, urging the United States to compete "for its survival."

His assessment is expected to be received positively by officials in the Chinese capital.

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

For years, China has poured significant resources into what the country's leader calls "advanced growth", which covers sectors from clean energy to artificial intelligence.

Even before the reappearance of Donald Trump to the US presidency, the Chinese government had spent billions of USD as part of its initiatives to transform its vast economy from the "global manufacturing hub" for standard goods to a center of cutting-edge industries.

An ongoing tariffs war with the United States under Trump has only made that mission more pressing.

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

Mr Huang has also cautioned that the US should trade freely with the Asian nation or face the possibility of giving it the edge in the AI race.

This occurs against a backdrop of Beijing exerting more scrutiny on Nvidia as it launched an investigation into market dominance into the firm last month.

But, China's state-led approach can also be an barrier to creativity if everyone in the industry only focuses on a "common objective", noted academic expert Chia-Lin Yang from a leading educational institution.

It can make it harder for disruptive ideas to break the mould, she added.

China's chip industry has also not fully addressed concerns that its offerings can be less user-friendly than those of Western rivals like Nvidia.

Prof Yang believes these issues can soon be solved by China's huge number of talented tech industry workers.

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

'China's Negotiating Tool

The expert described China's recent announcements about the chip sector as a "negotiating tool" in its months-long tariffs negotiations with the US.

Beijing aims to compel US authorities into selling its high-tech tools or risk its position in such a large market, stated Dr Jawad.

These announcements demonstrate strength on behalf of China, even though it is {