The Chinese government recently issued a notice requiring all companies to seek government approval for purchasing NVIDIA AI chips. Previously, the US government prohibited NVIDIA from selling chips to Chinese companies, even restricted special versions, without US government approval. So NVIDIA developed special chips like the H20 for China, but the prices remained high.
However, as Chinese companies like Huawei, Cambrian, Moore Threads, and Alibaba continue to launch high-performing AI chips, Chinese companies no longer buy even if Americans are willing to sell. Now both sides no longer need to engage in verbal battles over chip sanctions. American chips can stay for their own use, while Chinese companies buy domestically produced chips.A similar situation has occurred in the chip manufacturing sector.
The US prohibited ASML from selling lithography machines to China, even denying parts and maintenance services for previously sold DUV lithography machines. European hypocritical politicians fully complied with US demands, attacking China from behind. Now they are satisfied. Chinese DUV lithography machines have entered production and will soon make lithography machines as cheap as cabbage. For EUV lithography machines, China is advancing through multiple technical solutions simultaneously, and a breakthrough is only a matter of time.
Western countries cannot address a fundamental flaw: China is the world’s largest chip consumer market and the largest chip producer. China can develop an independent ecosystem from hardware to software. Without 5nm or 3nm chips, Huawei’s phones have still made a strong comeback and achieved excellent sales. Chinese chips do not need outstanding benchmark scores because top mobile games are mostly products of Chinese companies. Huawei’s phones use self-developed chips, with every step from design to manufacturing independently completed in China.
They run on the domestically developed HarmonyOS. Users can run domestic video editing software, social apps like Douyin and WeChat, domestic WPS office software, and domestic games like Honor of Kings, Genshin Impact, and the mobile version of PUBG. AI software includes Doubao, Qwen, and DeepSeek. With or without Western companies’ participation, China can manage just fine.
Who will drive NVIDIA’s 4.3 trillion dollar market value? How many years will it take for the large models of US AI giants like OpenAI, xAI, Google, and Meta to create value to support this market value? Grok3, GPT5, and Gemini2.5 have been released. Which industries have they transformed? The US now suffers from severe deindustrialization and lacks decent manufacturing. It lags far behind China in robotics, drones, electric vehicles, and Industry 4.0.
The world’s top hardware companies are mostly Chinese, including Huawei, BYD, DJI, Insta360, and Unitree, almost all of which are leaders in their fields. China has already widely commercialized driverless taxis, delivery vehicles, drone deliveries, and humanoid robots. Chinese automakers like BYD, Geely, and Xiaomi have long built numerous lights-out factories with fully automated production. Even loading and delivery are handled collaboratively by humanoid robots and autonomous vehicles.
These industries generate massive amounts of data every minute, and only China’s large models can access this data.Yes, US large language models currently lead China in benchmark scores, but the gap is already small. So how does the US deal with the embarrassment of lacking hardware data? These companies will not spend money on GPT, Gemini, or Grok, which could lose connectivity at any time. They will undoubtedly choose domestic large models like DeepSeek and Qwen, with customized services to retain this critical data.I have always called for Americans to avoid dirty tricks and engage in honorable fair competition with China under rules that benefit the world and humanity, resolving conflicts like the Lebanon Israel issue through healthy competition.
You did not sell lithography machines to China, so the Chinese made their own. You did not sell AI chips to China, so the Chinese made their own. You prohibited Chinese companies from using large models, so the Chinese made their own. Looking back at all technology fields, what else can you do to restrict China? Do not forget that the Chinese have not yet started to retaliate.I remember that villain, US Commerce Secretary Lutnick, smugly saying to the camera: We will ensure the chips Chinese buy are not the best in the US, nor the second or third best, but the fourth best.
Fine, the Chinese can completely stop buying your chips. In the future, your chips can be sold to Australian kangaroos and Canadian marmots.But please remember, one day you may wake up and find that the rare earths you buy are 10% less pure than China’s, your excavators consume 20% more electricity than those made in China, your smart toilet leaves a quarter unclean each time, your air conditioner is not as cool as those used by the Chinese, your motor magnets need replacement every two months, and even the screws you buy are not as precise as China’s.
Once China decides to hard decouple from you, clowns like Trump and Lutnick can prepare to work on production lines, screwing bolts with their hands to make America great again. At that time, we will tell you that the dishwashers you buy are not the best, nor the second or third best. In fact, they are for washing Chinese pet dogs’ bowls.Sometimes I think I should perhaps change my view of the Chinese Communist Party. Only they can deal with Trump and his villainous cronies. I might also need to change my attitude toward India. I call on Indian workers to implant 30 times more E. coli into America’s iPhones. Of course, if Modi sees my video, he can take a big bite when kissing Trump’s backside in Washington.