China bans foreign AI chips from state-funded data centres, sources say

Wednesday, Nov 5, 2025 3:14 am ET1min read

  China bans foreign AI chips from state-funded data centres, sources say

  The Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made artificial intelligence chips, two sources familiar with the matter told Reuters.

  In recent weeks, Chinese regulatory authorities have ordered such data centres that are less than 30% complete to remove all installed foreign chips, or cancel plans to ​purchase them, while projects in a more advanced stage will be decided on a case-by-case basis, the sources said.

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