China Adds Domestic AI Chips to Government Procurement List as U.S. Considers Easing Nvidia Export Curbs

China has taken a major step to reinforce its domestic semiconductor industry by adding locally developed artificial intelligence chips to an official government procurement list for the first time, according to a report from the Financial Times. Sources familiar with the matter said the Ministry of Industry and Information Technology recently approved AI processors from leading Chinese chipmakers, including Huawei and Cambricon, for use across public-sector projects.

The updated procurement guidance aims to accelerate China’s adoption of homegrown semiconductor technologies and reduce long-standing reliance on U.S. chip suppliers. Industry analysts note that prioritizing local AI chips could lead to billions of dollars in new sales for Chinese companies, boosting their competitiveness at a time when global chip supply chains remain geopolitically sensitive.

The FT reported that the directive was circulated prior to U.S. President Donald Trump’s announcement outlining plans to allow Nvidia to ship its advanced H200 AI chips to certain “approved customers” in China. While the potential easing of export restrictions signals a shift in Washington’s approach, political resistance in both the U.S. and China could still limit how widely Nvidia’s chips are ultimately distributed.

Several Chinese government agencies and state-owned enterprises have already received the unpublished procurement list, marking the first instance in which they have been formally instructed to prioritize domestic suppliers when purchasing AI processors. This move underscores Beijing’s broader strategy to strengthen technological self-sufficiency, particularly in sectors like artificial intelligence and semiconductors where U.S. companies have historically dominated.

China’s decision reflects its long-term ambition to develop a resilient chip ecosystem capable of supporting rapid AI growth. As global tensions around technology leadership intensify, the push to scale domestic chip production highlights Beijing’s commitment to reducing external dependencies while investing heavily in next-generation innovation.