Xi Jinping’s tech czar has issued a stark warning to Chinese AI companies, labeling anyone who resists the use of domestic chips as “a traitor,” according to the Wall Street Journal. This directive aligns with China’s strategy to reduce reliance on foreign AI chips, achieving a decrease from 90% dependency in 2021 to under 60% by 2025, with an ambitious target of just 25% by 2030. In response to these policies, leading manufacturers like Huawei are ramping up production, with plans to ship 1.5 million AI chips this year, effectively doubling its output by 2025 as part of the nation’s broader self-sufficiency efforts in technology.

Huawei: Huawei is a major Chinese technology company involved in developing and manufacturing advanced AI chips and related hardware. It plays a central role in China’s efforts to expand domestic semiconductor production. The news highlights its plans to increase shipments of these AI chips amid policy pushes for local alternatives.
Xi Jinping: Xi Jinping is the paramount leader of China, serving as General Secretary of the Communist Party and President. His administration directs national technology policies focused on self-reliance in key sectors like semiconductors and artificial intelligence. The news reports a warning issued by his tech czar to Chinese AI firms emphasizing the use of domestic chips.
Chinese AI companies: Chinese AI companies refer to firms operating in China that develop artificial intelligence technologies and applications. They are subject to direct government directives on sourcing hardware. The news describes a strong warning to these companies against resisting domestic chips.

Industry Response: Leading domestic manufacturers are expanding production of locally developed AI chips to support national technology goals.
Policy Enforcement: Chinese officials are issuing direct warnings to technology firms to prioritize domestic chips as part of broader self-sufficiency efforts.