US chipmakers fear Huawei's rise in China AI market

The Trump administration's new restrictions on sales of advanced AI chips to China by companies like Nvidia, AMD, and Intel have closed off a major market for U.S. semiconductor firms, resulting in significant share price declines and concerns over lost revenue. Industry lobbying efforts to ease these restrictions have failed, and experts warn that the move could backfire by accelerating the growth of Chinese companies like Huawei, potentially enabling them to become global chip leaders. Some analysts argue that these export controls may inadvertently strengthen China's domestic chip industry, making it harder for U.S. firms to regain market share in the future. Additionally, the U.S. is cautioned against complacency in global tech competition, as failure to engage with the Global South could allow China to shape international technology standards and norms. The policy shift also risks harming developing countries that rely on chip imports, further complicating the global tech landscape. Overall, these developments reflect a broader reordering of the global economy amid rising U.S.-China tensions in the race for AI supremacy.