{"id":1630,"date":"2025-09-21T21:57:50","date_gmt":"2025-09-21T21:57:50","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/china-isnt-begging-nvidia-anymore-watch-homegrown-tech-plays-instead\/"},"modified":"2025-09-21T21:57:50","modified_gmt":"2025-09-21T21:57:50","slug":"china-isnt-begging-nvidia-anymore-watch-homegrown-tech-plays-instead","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/china-isnt-begging-nvidia-anymore-watch-homegrown-tech-plays-instead\/","title":{"rendered":"China isn&#8217;t begging Nvidia anymore. Watch homegrown tech plays instead"},"content":{"rendered":"\n<div>\n<div data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<p><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"xyz-data\">Perhaps the biggest outcome of the latest U.S.-China trade talks is China&#8217;s increased confidence in its homegrown technology. Alibaba and Baidu both saw their stocks surge this past week after news of AI advances and business deals . Huawei touted AI chip systems better than Nvidia&#8217;s at the same time as Beijing extended a probe into the U.S. chipmaker. Chinese regulators are now discouraging domestic tech giants from buying Nvidia chips, the Financial Times reported, citing unnamed sources. \u201cIt&#8217;s unlikely that Chinese companies can opt to completely do away with foreign chips, for now,&#8221; said Brian Tycangco, analyst at Stansberry Research. &#8220;But news coming out of China like this is not coincidental. It&#8217;s meant to send a message and, potentially, weaken President Trump&#8217;s hand in trade war negotiations.&#8221; &#8220;For the time being, the safe play is to stick with the big names in the industry, such as SMIC, Alibaba and Baidu,&#8221; the analyst said. &#8220;We have no way of telling where the trade war will eventually end up. China&#8217;s chip ecosystem is growing fast, but also entails a significant risk for smaller players with limited access to capital.&#8221; Surviving Nvidia restrictions Major Chinese AI players appear to have survived U.S. restrictions on Nvidia so far. Bernstein analysts said in a note Friday that they assume Chinese internet companies can continue to access Nvidia-based computing power overseas. The Bernstein analysts have overweight ratings on both U.S.-listed Alibaba and Hong Kong-listed Tencent . &#8220;Tactically, Q2 2025 felt like a narrative shift moment for the market&#8217;s awareness of AI-driven growth in China,&#8221; they said. &#8220;The latest news flow around China banning purchases of Nvidia chips is unhelpful on the margin for AI development progress, at least domestically,&#8221; the Bernstein analysts said. But they noted that, over time, domestic chip alternatives will likely at least &#8220;hit &#8216;good enough&#8217; territory.&#8221; Technology self-sufficiency The ramp up in China-made chips is just part of Beijing&#8217;s long-term ambitions for technology self-sufficiency. The strategy will result in &#8220;an acceleration of localization in key components (sensors, motors, reducers, batteries), with China-based suppliers expected to dominate global cost curves and increase competitive pressure on incumbent leaders,&#8221; Morgan Stanley analysts said in a report Wednesday on thematic investing in Asia. In the firm&#8217;s first-ever Asia thematic focus list, only a handful of mainland China-based companies were recommended, primarily in &#8220;AI &amp; Tech Diffusion.&#8221; The Morgan Stanley screen looked for stocks based on factors such as valuation and earnings expectations, in addition to thematic exposure. The narrow selection includes Shenzhen-listed Naura Technology , a leading semiconductor equipment manufacturer. The Morgan Stanley analysts also highlighted Shenzhen-listed Inovance Technology for its automation and humanoid robot potential, as well as Hong Kong-listed electric car company Xpeng , citing its edge in advanced driver-assist technology and investments in humanoid robotics. In addition, &#8220;Tencent should benefit as the market shifts focus from [large language model] capabilities to AI applications and monetization,&#8221; the Morgan Stanley analysts said. Tencent on Tuesday announced new AI tools for industrial use at a two-day digital ecosystem summit in Shenzhen. &#8220;China is developing cutting edge AI capabilities with significantly less hardware, redefining expectations of computing power requirements,&#8221; Morgan Stanley said, highlighting a Beijing policy of &#8220;AI+.&#8221; China in late August released details on the plan, which calls for integrating AI across industries. Beijing is expected to discuss its five-year development goals at a high-level meeting in October. \u2014 CNBC&#8217;s Michael Bloom contributed to this report.<\/span><\/span><\/span><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Perhaps the biggest outcome of the latest U.S.-China trade talks is China&#8217;s increased confidence in its homegrown technology. Alibaba and Baidu both saw their stocks surge this past week after news of AI advances and business deals . Huawei touted AI chip systems better than Nvidia&#8217;s at the same time as Beijing extended a probe [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1631,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[1534,1533,247,1536,273,615,564,617,1535],"class_list":["post-1630","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-anymore","tag-begging","tag-china","tag-homegrown","tag-isnt","tag-nvidia","tag-plays","tag-tech","tag-watch"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/1630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=1630"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/1630\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/1631"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=1630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=1630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=1630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}