China’s AI Sector Faces Growing Tech Gap with U.S. Amid Chip Restrictions

China's artificial intelligence industry confronts a widening technological divide with the United States, according to leading domestic researchers. Tang Jie, founder of AI firm Zhipu, delivered a sobering assessment at a Beijing conference: "The truth may be that the gap is actually widening." The remarks underscore China's struggle to maintain parity in critical AI infrastructure.

Nvidia's January rollout of Rubin hardware exposed the depth of China's semiconductor challenges. American export controls barred direct sales to Chinese firms, forcing developers to explore circuitous procurement channels. Industry sources reveal discussions about leasing computing power from Southeast Asian and Middle Eastern data centers—a stopgap measure that leaves Chinese AI labs at a permanent disadvantage.

Alibaba's AI chief Justin Lin offered equally stark projections when questioned about surpassing Western leaders like OpenAI. His response: no better than 20% odds within five years. The assessment reflects how export controls have chilled investment in frontier AI development, where computational requirements create insurmountable barriers for all but the best-funded American firms.