[Audio+Video] The Big Technology Podcast: China's AI Strategy
Will China be able to continue to make major breakthroughs in AI?
Hi all, I recorded an episode with for his Big Technology Podcast a month ago on China’s AI strategy and the happenings on the ground. This episode was recorded way before this round of tariff tit-for-tats took off, thus it does need a little bit of context there, so I have supplemented this audio piece with some comments on the tariffs and what a prolonged trade war may mean for China’s AI and tech sector.
First, I want to say it was an absolute pleasure meeting Alex, and his podcast is awesome. You should check it out on Spotify or on YouTube.
The Big Technology Podcast takes you behind the scenes in the tech world featuring interviews with plugged-in insiders and outside agitators. Alex Kantrowitz, a Silicon Valley journalist who's interviewed the world's top tech CEOs — from Mark Zuckerberg to Larry Ellison — is the host.
Some of his most recent and memorable interviews include:
Mustafa Suleyman, CEO of Microsoft AI, discusses Microsoft's strategy for building emotionally intelligent AI companions, their data center plans, and the future of AGI.
Thomas Kurian, CEO of Google Cloud, shares how AI is changing the competitive balance in cloud services and why he believes it has a strong case to win.
Alexandr Wang, CEO and co-founder of Scale AI, shares AI predictions for 2025, including geopolitical tensions in AI, the rise of AI agents for consumers, and the increasing importance of data over computing power.
Ranjan Roy, Founder of Margins, discusses the trade war between China and the U.S. and its potential impact on big tech and Silicon Valley.
Yann LeCun, Chief AI Scientist at Meta, explains why AI systems must build an abstract knowledge of the way the world operates to advance truly.
David Baszucki, CEO of Roblox, shares his vision for generative AI in game creation, child safety concerns, and the future of creative digital experiences on Roblox.
Mark Chen, Chief Research Officer at OpenAI, reveals details about GPT 4.5, AI scaling challenges, and OpenAI’s future directions in large language models.
Below are some points I think that provide some context and update to the ongoing tariff war:
Manufacturing and Technology Reshoring
Reshoring manufacturing to the U.S. for sensitive sectors, and especially those tied to national security or critical infrastructure does make strategic sense. Since the 2018 start of the trade tensions, we’ve seen China build out more of its own parallel supply chain for advanced tech. While Chinese semiconductors and GPUs are still not on par with cutting-edge global counterparts, China is now far more self-sufficient than it was pre-2018 in several frontier technology areas.
From the U.S. side, the push to reduce dependence on certain supply chains is understandable — but blanket tariffs across broader categories risk becoming counterproductive. They could end up hurting businesses, workers, and consumers around the world, not just in China, in ways that may not serve the original intent.
There has been some moving of the supply chain out of China for many companies, but Tim Cook said that it’s hard to find cheaper labor in China and skilled labor at scale in China which is hard to find in immediate terms in other markets. If Tariffs stick then it would hurt the big tech quite bad and it will force them to re-strategize their sourcing.
On-the-ground Sentiment in China
I recently spent time in Beijing and Shanghai. On the surface, daily life feels normal, but under that, many in the business world — especially those in tech — are anxious. There's a growing concern about deeper decoupling and what that might mean for market access, innovation partnerships, and supply chain reliability.
Actually, an AI event that I was invited to in Shanghai was cancled after the tariffs were announced. Overall sentiment isnt that great and companies are laying low.
Chinese AI Companies: Watching and Waiting
Even though these recent tariffs aren’t directly targeting Chinese AI software companies, the knock-on effects are real. Many of their biggest clients are global tech giants, especially in the West. If those clients face disruptions or higher costs, it inevitably impacts the whole ecosystem, including Chinese AI providers.
So right now, the mood among many of these firms is cautious — a kind of quiet ‘wait and see’ approach. There’s ambition, but also a clear understanding that the external environment is beyond their control.
Social and Cultural Impact: Rise of Sinophobia
For me, the more worrying trend that goes beyond just business is the rise in anti-Chinese sentiment, or Sinophobia. This has been building since the pandemic and has real-world effects even in multicultural cities like New York, San Fran or Vancouver.
We’re seeing lines blurred between government policy, ethnicity, nationality, and even cultural identity. That kind of conflation is dangerous, not just for Asian communities but for society at large. It affects how people feel in their neighborhoods, in schools, and in workplaces. And in the long term, it damages the social fabric that innovation and collaboration depend on.
5. Long-Term Perspective: Innovation and Interdependence
What’s often lost in the headlines is just how interdependent and connected the global tech landscape still is. AI, semiconductors, cloud computing — these are built on global collaboration, from academic research to chip design to supply chain logistics. Even as countries pursue more autonomy, true innovation tends to thrive in more open systems.
6. Competition Without Collapse vs. Increasing Self-sufficiency
It’s possible to be in strategic competition without cutting off collaboration entirely. That balance is tricky, but it’s where the real opportunity lies, to build guardrails for security while still enabling progress in areas like climate tech, healthcare AI, and open-source innovation.
Going forward, it is likely that China will just become more and more self-sufficient in tech advancement, out of necessity. Amid back and forths about Nvidia’s H20 chip ban, there are more voices coming out and saying that Huawei’s new AI server is “insanely good” (Dylan Patel of SemiAnalysis). More specifically, “Huawei AI CloudMatrix 384 is China’s answer to Nvdia).
Great to have you on the show Grace. This is a must-listen episode for anyone interested in China's AI strategy.
Excellent interview. Nothing like having a bi-cultural insight into the AI space.