--- title: "China’s chip industry seeks more state support for AI dominance" type: "News" locale: "en" url: "https://longbridge.com/en/news/278400697.md" description: "Representatives of China's semiconductor industry are advocating for increased state support in AI chips and critical materials to enhance technological advancements. During the recent \"two sessions,\" industry leaders urged the government to utilize China's strategic advantages in chip raw materials and expedite AI chip commercialization. They emphasized the need for government regulation on AI computing power pricing and proposed a unified trading market for computing power. Additionally, they highlighted China's dominance in rare earth elements and called for collaboration to address semiconductor material bottlenecks amid U.S. sanctions." datetime: "2026-03-09T13:32:44.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278400697.md) - [en](https://longbridge.com/en/news/278400697.md) - [zh-HK](https://longbridge.com/zh-HK/news/278400697.md) generator: "portal-rs" --- # China’s chip industry seeks more state support for AI dominance Representatives of China’s semiconductor industry are calling for stronger state backing in artificial intelligence chips and critical materials, aiming to fast-track core technology breakthroughs. During last week’s “two sessions” – the annual meetings of China’s top legislature and advisory body – scholars and entrepreneurs in the semiconductor sector urged Beijing to leverage the nation’s advantage in strategic chip raw materials and accelerate the commercial application of AI chips to secure a lead in the global tech race. Zhang Yunquan, a professor specialising in high-performance computing at the Chinese Academy of Sciences, said the government should take a greater role in regulating the prices of AI computing power, which is delivered by chips running in data centres for modern AI workloads. “Competition among companies is fierce, with most resorting to low-price tactics, leading to ‘involutionary’ competition,” he told the South China Morning Post during the sessions, referring to cutthroat, low-quality price competition – prevalent in sectors ranging from electric vehicles (EVs) to food delivery – that Beijing has vowed to combat. Zhang, a member of the Chinese People’s Political Consultative Conference, suggested that the government could issue pricing guidelines on AI computing power. He proposed that the country establish a “unified trading market where computing power across the country can be traded uniformly”, making computing power “a commodity like electricity or oil”. Hao Yue, a deputy to the National People’s Congress (NPC) and vice-president of Xidian University in Xian, Shaanxi province, highlighted China’s “industrial leverage” in rare earth elements. Speaking to Chinese media during the two sessions, Hao said that China had already developed strong international competitiveness in materials – such as silicon carbide and gallium oxide – used in making third- and fourth-generation semiconductors, as well as in advanced photonic chips that use light instead of electrons to process and send data. Such materials are essential for EVs and high-frequency communications. “China currently controls more than 95 per cent of the world’s gallium resources and has implemented export controls on key semiconductor materials such as gallium and germanium,” he said, adding that this was an industrial advantage that other countries did not have. Zhang Guohu, an NPC deputy and the general manager of Gritek, a semiconductor-materials company in Shandong province, also called for more collaboration in northern China’s semiconductor industry by linking resources in the Beijing-Tianjin-Hebei region to solve upstream chip-material bottlenecks. The fresh remarks echoed a rallying cry last week by China’s top semiconductor executives, who called for a nationwide push to step up efforts in chipmaking equipment – an area where the country has long faced bottlenecks amid United States sanctions. In a recent article co-authored by the co-founder of Semiconductor Manufacturing International Corporation and leaders of Empyrean Technology, Yangtze Memory Technologies and Naura Technology, as well as academics, the heavyweights urged the industry to “abandon illusions and prepare for struggle”, and to build a domestic alternative to Dutch lithography giant ASML. The US had also sought to contain China’s rise in silicon wafers, a key chip material, according to the article, which was published in the print version of the Science and Technology Review journal last month and made available online on Wednesday. ### Related Stocks - [003032.CN](https://longbridge.com/en/quote/003032.CN.md) - [159516.CN](https://longbridge.com/en/quote/159516.CN.md) - [561980.CN](https://longbridge.com/en/quote/561980.CN.md) - [588200.CN](https://longbridge.com/en/quote/588200.CN.md) - [562590.CN](https://longbridge.com/en/quote/562590.CN.md) - [159995.CN](https://longbridge.com/en/quote/159995.CN.md) - [512480.CN](https://longbridge.com/en/quote/512480.CN.md) - [159325.CN](https://longbridge.com/en/quote/159325.CN.md) - [588780.CN](https://longbridge.com/en/quote/588780.CN.md) - [159546.CN](https://longbridge.com/en/quote/159546.CN.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**