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Gavekal Technologies, Chips
Internal Tensions In China’s Chip Industry
Laila Khawaja
10 Sep 2025
Internal tensions in Beijing’s response to foreign chip sanctions are resurfacing. Huawei is celebrated as a national success, yet its growing dominance risks undermining suppliers and competitors. SiCarrier, a young government-backed equipment maker closely tied to Huawei, has reportedly won over US$1.4bn in orders, drawing skepticism from industry executives and criticism of unfair practices from industry leader AMD.
Gavekal Technologies, Chips
Economies Of Scale
Damien Ma, Laila Khawaja, Tom Hancock, Dan Wang
8 Sep 2025
China’s core industrial competence is scaling up production of pretty much anything you can name and reducing its cost. The question is not whether it can keep doing this but which sectors will be next. In this issue of Gavekal Technologies Briefing we look at a few candidates.
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China’s Plan For Closing The AI Chip Gap
China aims to become a global AI innovation hub by 2030 and an intelligent economy by 2035, with massive compute buildouts central to this push despite near-term overcapacity concerns. With US restricting both the export of advanced chips and Chinese AI firms’ access to Taiwan Semiconductor Manufacturing, Beijing will need to rely on a mix of grey-channel imports and domestic production, unless Washington relaxes chip controls.
China’s New DeepSeek Moment
DeepSeek update boosts outlook for Chinese AI stack. Xiaomi to launch next-generation chip in late 2026. Texas Instruments raises prices in China.
Lessons In Economic Statecraft
Global technology competition is increasingly defined by the ways in which states support their own tech ecosystems while trying to impede those of their rivals. Here, we examine how China supports new tech industries not just through subsidies but through conjuring up state-led demand, and dissect China’s role in the US pharmaceutical supply chain to assess how much risk the sector faces from American tariffs and import restrictions.
The AI Bubble View From China
The AI bubble view from China. The global AI diffusion race: focus on talent training. Huawei unveils new software to reduce HBM reliance.
Huawei Goes Open-Source
Huawei open-sources CANN; first steps towards a national AI compute network; the profitless progress of humanoid robots.
The Power Of Politics
In this edition of Gavekal Technologies Briefing we explore the many forces at work trying to influence US-China talks on export controls, the risks to China’s booming pharmaceutical sector from security rules in Washington, and Beijing’s political campaign to undo the excess capacity in solar energy gear that a previous political campaign created.