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Chinese tech firms build local AI ecosystem amid U.S. restrictions

Nigar Sultanli
31 July 2025 14:07
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Chinese tech firms build local AI ecosystem amid U.S. restrictions

In response to U.S. export restrictions, Chinese tech giants such as Huawei, Alibaba, and Baidu are joining forces to build a strong domestic artificial intelligence (AI) ecosystem.

The announcement came during the World Artificial Intelligence Conference in Shanghai, where Huawei introduced its powerful new AI computing system — CloudMatrix 384, built with 384 of its own 910C chips. According to some reports, this system even surpasses the latest products by U.S. leader Nvidia in key performance areas.

A new "Model-Chip Ecosystem Innovation Alliance" brings together top AI chipmakers (like Huawei, Biren, and Moore Threads) and large language model developers. Their goal: to create a fully Chinese tech stack — from hardware to AI infrastructure — independent of foreign technology.

Another alliance under the Shanghai General Chamber of Commerce AI Committee focuses on applying AI in industrial transformation. It includes rising AI players like SenseTime, MiniMax, StepFun, and Iluvatar CoreX.

More innovations revealed:

  • Tencent launched “Hunyuan3D World Model 1.0,” a platform where users can generate interactive 3D environments from text and images.
  • Baidu demonstrated how it can create realistic digital hosts using just a 10-minute video — cloning a person’s voice, tone, and gestures.
  • Alibaba unveiled Quark AI Glasses, powered by its Qwen model, allowing users to navigate maps or make payments via voice commands. They’re expected to hit the market by the end of 2025.

These developments show China’s determination to build self-reliant, cutting-edge AI systems — and stay competitive globally despite increasing tech tensions.

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