China accelerates AI development as US chip restrictions pose challenges

Chinese companies are rapidly advancing in artificial intelligence (AI), launching numerous generative AI services to compete with Western firms like OpenAI and Google. As of November, 252 AI services have been approved for public use in China, reflecting a growing market. Despite initial setbacks due to U.S. chip restrictions, Chinese firms have developed competitive video and reasoning models. Recent releases include Alibaba's QwQ model and DeepSeek's R1 model, which claim to match or exceed OpenAI's offerings in various benchmarks. However, U.S. trade restrictions on advanced chips pose challenges for China's AI ambitions. Analysts warn that without access to new hardware, Chinese companies may struggle to maintain their momentum in AI development.