China advances in AI but faces US chip restrictions in 2024

China has rapidly advanced in the AI sector, with 252 generative AI services approved for public use as of November. This growth is fueled by significant investment and an open-source approach from local tech companies. Despite this progress, Chinese firms face challenges due to restrictions on advanced chips from the U.S. These curbs may hinder their ability to compete effectively in the global AI market. While Chinese companies initially struggled to keep pace with Western counterparts after the launch of ChatGPT in late 2022, they have made significant strides in 2024. However, the ongoing chip restrictions cast uncertainty on their future capabilities.