As President Trump steps up export controls to block China’s access to advanced semiconductors, Beijing and its tech sector are signaling self-reliance to the world and, pointedly, to Trump himself. On a recent government-led media tour through Jiangsu and Zhejiang, two of China’s wealthiest provinces, local tech firms showcased their progress using chips sourced from outside the U.S. Outlets like Bloomberg were invited to observe firsthand. The tour took place amid reports that some Chinese AI firms are circumventing U.S. restrictions by physically exporting large volumes of training data to countries such as Malaysia.
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For the sake of financial perspective, China’s core AI industry was valued at about $83 billion as of early 2025. Morgan Stanley (MS) expects that figure to grow to $140 billion by 2030. In comparison, U.S. companies such as Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG) (GOOGL), and Meta Platforms (META) each have valuations exceeding $1 trillion. These firms dominate AI development globally and have access to the most advanced chips and cloud infrastructure.
A Unified Chinese Message
First to issue a defiant message was Magiclab Robotics, a startup based in Suzhou, which claims to have built over 90% of the components for its humanoid robots in-house. Its president, Wu Changzheng, noted that the remaining parts come from domestic and international suppliers but not from the U.S. Magiclab’s robots use standard chips, avoiding the need for high-end AI accelerators.
Another company, AISpeech, a maker of in-car audio and video AI tools, states that it now employs over 700 people across its research hubs in Beijing and Suzhou. The firm also opened a unit in Shenzhen to stay close to smart equipment suppliers. According to co-founder Yu Kai, AISpeech is expanding by tapping local talent and regional manufacturing strengths.
In biotech, IASO Bio is drawing global attention with its cancer immunotherapy, reportedly priced far lower than Western rivals. Still, Chairwoman Zhang Jinhua acknowledged that securing financing has become more challenging due to tightened U.S. restrictions.
China Sets Big Goals, but Faces Bigger Hurdles
Throughout the five-day trip, Chinese executives played down the impact of U.S. tech controls. Instead, they pointed to steady growth in domestic R&D and support from Beijing. The Chinese government has set a goal to produce 70% of semiconductors locally by 2025. Key strategies include chip-stacking techniques and investments in basic components.
While companies like Magiclab and AISpeech operate without needing Nvidia’s (NVDA) top-tier AI chips, China’s most advanced AI efforts still face limits. Firms working on artificial general intelligence or autonomous driving depend on semiconductors that are now harder to import.
Beijing is responding by placing restrictions on rare earth exports, materials used in electric vehicles, wind turbines, and military gear. A recent deal between the U.S. and China aims to stabilize supplies, but uncertainty remains.
Using TipRanks’ Comparison Tool, we’ve assembled all the tickers mentioned in the article and added some other notable Chinese AI companies such as Tencent (TCEHY) and Alibaba (BABA).
