While still dependent on American AI chips, Chinese firms like Huawei are quickly developing competitive alternatives, threatening U.S. chipmakers. In mid-July 2025, the American semiconductor chip giant Nvidia announced the U.S. government would allow it to sell its advanced H20 artificial intelligence (AI) chip to China, following previous export controls imposed in April. But some Chinese semiconductor makers latched on to the “Delete A” idea to reduce foreign dependence within the technology supply chain. China’s chip industrial policy has not seen all rosy results. In August 2024, Huawei was testing its Ascend 910C chip, which Huawei indicated was comparable to Nvidia’s H100 4-nanometer AI chip.