New reporting that China is accelerating efforts to boost domestic AI chips, even as the president is

easing Nvidia export restrictions. In today's tech, DeBosso digs into what more Nvidia chips

could mean for China's tech giants. Morning, Dee. Hey, morning, Carl. So, Deep Sea, yes, it's reportedly

training on smuggled Blackwells. Meanwhile, bite dance and Alibaba, Reuters says immediately asked for H-200

orders as soon as Trump reopened the window. Now, this all exposes how far behind China's domestic

chip sector still is. It also forces Beijing into a three-way tradeoff that it can't win.

Letting companies buy Nvidia chips, that hurts momentum behind Beijing's domestic chip champions that, by the way,

are now worth nearly $300 billion in market cap. On the other hand, blocking them slows its own

tech giants and weakens China's best AI models. Third option, looking the other way, while

companies keep using gray market chips, that means giving up regulatory control altogether. So whichever way it turns,

Beijing loses leverage. Now, the policy itself, it doesn't supercharge China's AI sector. It

formalizes the dependence that already existed in the shadows, dependents that Deep Seek and others

have already been exploiting. And instead of breaking from U.S. hardware, Chinese AI labs, they end up even more tied to

Nvidia's roadmap stuck at whatever generation Washington is allowing.

Now, Trenforce, an industry research firm cited by analysts that predicted that China's high-end

chip market would grow by over 60% next year, reaching about 50% market share.

But that projection was built during a ban on

U.S. chips. This reopening, that could change the equation and threatens all of that artificial

demand that Beijing has spent years propping up. That's why, guys, this is not the strategic

loss that some critics and China hawks lawmakers that they claim legal access

doesn't actually narrow the gap. It just narrows China's options. And it keeps the ceiling on

progress in U.S. hands, guys. Yeah, I mean, so many questions. There's the geopolitical question.

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