The possibility of the US banking giant is hopeful that Beijing will promote the economy with meaningful excitement measures, target labor and real estate markets. China’s growing presence in AI space may be another idea.
On transmission through American tariffs and third countries, Levi has not stopped China from testing the borders of the Trump administration.
Beijing Proxy increases trade war
On Wednesday, September 17, Beijing targeted the US chip manufacturers, causing the market to move. CN Wire said:
“The Chinese Internet regulator has ordered the country’s largest technical firms to order to stop all the purchase of AI chips of NVidia and cancel the existing orders, as Beijing intensifies efforts to develop its domestic semiconductor industry and compete with the US. […] The ban is strict compared to prior guidance, which targeted the NVIDIA H20 chip, widely used for AI in China. Beijing Chinese technology is carrying on to reduce dependence on NVidia to obtain an independent semiconductor supply chain for AI competition to AI competition. ,
NVIDIA (NVDA) shares reduced Wednesday session by 2.62% with a slight 0.33% loss of NASDAQ Composite Index. Pulback underlined the possible impact of zero demand from China on earnings. In addition, China can introduce low -cost chips and eradicate Nvidia’s global market share.
Stensberry Research Editor Brian Tikangko commented:
“This NVDA is $ 100 billion in the lost market price after China’s move to prevent chip procurement. A small amount in terms of percentage. But it can be a preface for worse things for the world’s most valuable company.”
Alibaba and Huawei – Cuddle to replace Nvidia
Chip Ban opens the door to Chinese tech firms including Alibaba (HK: 9988) to dominate the domestic market. Alibaba allegedly closed a deal with the country’s second largest wireless carrier China Unicom to supply its T-Hed AI chips on 17 September.
According to CN Wire, Alibaba is investing 380 billion yuan ($ 53.5 billion) in three years in AI Infrastructure to reduce dependence on Nvidia chips, which are banned in China.
After the 5.28% rally of the previous day, Alibaba rose 1.18% in early trade on Thursday, 18 September. Year by year-by-Tarikh, Alibaba has increased by 98%, 26.8% ytd profit of dwarf NVidia. On Thursday, 18 September, Huawei announced a plan to launch Archand 950PR chip in the fourth quarter of 2026, with further chip in Q4 2026, 2027 and 2028.
The US administration has potentially poured the bear, carrying forward a proxy business war. In July, the US rolled out tariffs on transmission and recently pressured China’s major trading partners, including the European Union, to force Beijing to cut Russian oil imports.
