China and its tech majors such as Huawei face tough trade restrictions imposed by the United States to slow its progress in artificial intelligence, specifically targeting chip manufacturing.

However, these measures do not seem to have had the desired effect, with recent reports that Huawei, one of the most vulnerable companies to the US sanctions, has sufficient resources to manufacture nearly 750,000 advanced artificial intelligence chips.

The United States has imposed trade restrictions on Huawei for years, and the sanctions began in the telecommunications sector, as the US authorities claimed that the company's equipment poses a threat to the country's telecommunications infrastructure, and the sanctions also included the development of 5G technology globally.

As big tech companies have expanded into artificial intelligence, Huawei has faced additional restrictions aimed at slowing its progress in this area.

The last trade restrictions came into effect in December 2024, but they were not as severe as Chinese companies had expected, with previous reports suggesting that the reaction of Chinese companies was largely indifferent.

According to the Center for Strategic and International Studies (CSIS), Huawei has the capacity to manufacture one million Ascend 910C AI chips, which are produced by combining two Ascend 910B chips with a manufacturing process known as packaging.