China is intensifying its efforts to establish a self-sufficient artificial intelligence ecosystem to counteract U.S. export controls and technological restrictions. Recent initiatives, showcased at a Shanghai AI conference, include increased investments in power generation and skills training to bolster its AI capabilities and reduce dependency on Western technologies.

China's major tech firms, including Alibaba, Tencent, and Baidu, are beginning to switch to domestically produced chips as they face a shortage of Nvidia processors and stricter U.S. export controls. This shift aims to address the increasing demand for artificial intelligence technologies within the country.