The Chinese government has issued a policy directing data center operators nationwide to ensure that more than 50% of their chips come from domestic suppliers. This directive is part of a strategy to reduce dependency on foreign technology.

Originally proposed in local guidelines for Shanghai last March, the initiative mandated that local data centers adopt domestic computing and storage chips at a rate exceeding 50% by 2025. According to the South China Morning Post, this requirement has since transitioned from a local policy to a nationwide mandate.

Although China’s chip manufacturing capabilities are still evolving, efforts to increase the use of local technology in data centers reflect a significant shift towards self-sufficiency in the tech sector. This policy aims not only to bolster domestic manufacturers but also to establish a robust framework for future innovation in the Chinese AI and data industries.

DeepSeek, a notable player in AI solutions, has previously demonstrated that significant progress can be made in the AI field even with domestic hardware, suggesting that innovation is progressing within China despite existing challenges.