The United States' export restrictions on China's semiconductor industry have failed to curb the growth of Chinese companies and have instead driven independent innovation, reducing reliance on U.S. technology and strengthening China's competitiveness in the global market, experts say.
Earlier this week, the Biden administration announced new export restrictions on advanced chip technology, specifically targeting China. The incoming Trump administration is set to review the policy and decide whether to maintain the same course.
AI chip maker NVIDIA issued a statement saying the rules would only weaken America's global competitiveness. This sentiment was echoed by Tim Bajarin, president of Creative Strategies, a Silicon Valley-based market intelligence and strategy consulting firm.
"These restrictions will keep, I think, global competitiveness away in some sense, because it's restricting who we can partner with. And that's going to be an issue that's incredibly difficult to deal with. And then of course, the technology effectiveness, the restrictions may not effectively limit overall AI computing power, as competitors can achieve similar capabilities by using more, less powerful GPUs but cobbling them together," he said.
That's exactly what Chinese companies have managed to do. A prime example is the Chinese-developed DeepSeek AI chatbot, whose developer claims to have spent only a fraction of the development costs compared to companies like OpenAI. In some tests, it closely matched OpenAI's ChatGPT model and outperformed Meta's Llama AI model.
"You could have said that thanks to the sanction of the chips, lots of Chinese AI startups focused on developing AI applications in a more efficient way, using much fewer GPU chips than the U.S. counterparts," said Winston Ma, author of "The Digital War."
One area where Chinese tech companies have focused their efforts is humanoid robotics.
"[If you went to] the recent CES Las Vegas Exhibition, you will find Chinese manufacturers dominate the exhibition of smart robotics. It's interesting that 'Made in China' was started when China was at the low end of the global supply chain. But after two, three decades, the Chinese manufacturing ecosystem, especially relating to electronics, has become the strongest in the world," said Ma.
Rebecca Fannin, author of "Tech Titans of China," said the lack of collaboration has led to diverging paths in the personal computing space.
"We're seeing separate spheres developed of innovation. For instance, with Huawei and its own Harmony OS operating system, totally developed within China, no longer dependent upon anything from Android," she said.
China doubles down on innovation amid US restrictions on chip exports: experts
China doubles down on innovation amid US restrictions on chip exports: experts
The 2026 Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting will be held from May 22-23 in Suzhou City, east China's Jiangsu Province, with preliminary consultations and seminars kicking off on Monday.
Multiple consultations have commenced, including discussions on the joint statement to be issued at the meeting and ways to promote cooperation in digital trade.
Additionally, the "Big Market for All: Export to China" Suzhou special event and the Suzhou products promotion event opened Monday.
Experts emphasized that the minister's meeting will play a timely role in advancing regional economic integration and tackling emerging trade challenges through deeper cooperation in digital and green sectors.
"APEC is the highest-level and most influential economic cooperation mechanism in the Asia-Pacific region. On the 20th anniversary of the vision for a Free Trade Area of the Asia-Pacific (FTAAP), the 2026 Suzhou APEC Ministers Responsible for Trade Meeting will play a positive role in safeguarding the multilateral trading system, stabilizing Asia-Pacific cooperation, and leading global open development, countering the increasingly intensifying wave of trade protectionism," said Yuan Qian, deputy director of the trade and investment research division of the Institute of World Economics and Politics, which is under the administration of the Chinese Academy of Social Sciences.
"At the same time, as a new round of technological revolution and industrial transformation accelerates, this meeting takes cooperation in emerging areas such as digital and green as important content, better aligning with the trend of global technological innovation and development, countering global economic growth pressures, and opening up new spaces for regional cooperation and development," the expert added.
Terms such as digital economy, electronic bills of lading, and green supply chains appear frequently in the agenda of the APEC trade ministers' meeting.
"Although electronic bills of lading may seem small, their impact on international trade is very critical. They can improve customs clearance efficiency and reduce customs clearance costs. If promoted, it will not only affect these developed economies and large traders, but more importantly, it will significantly enhance the ability of some small and medium-sized economies and some developing countries to participate in international trade and improve their trade efficiency," said Zhou Mi, deputy director of the Institute of American and Oceania, Chinese Academy of International Trade and Economic Cooperation, which is under the administration of the Ministry of Commerce.
This year, a key topic of the meeting is the digital economy.
"In the past, people thought the digital economy was an option; now it has become a must. Because having advantages in digital economy development means having greater advantages in international trade. They (member economies) have seen some of China's practices and approaches in the digital economy field and hope to use such a platform to further improve their own technology and strengthen coordination with China," said Zhou.
Founded in 1989, the APEC is the highest-level, broadest and most influential economic cooperation mechanism in the Asia-Pacific region. About 700 representatives from 21 APEC economies and international organizations will gather in Jiangsu for the APEC Ministers Responsible for Trade Meeting.
Preliminary consultations begin for APEC trade ministers' meeting
