Trump’s H20 chip ban, though initially disruptive, is likely to accelerate China’s push toward self-sufficiency in AI hardware and software ecosystems.

Bernstein analysts argue that banning Nvidia’s AI chips won’t hinder China’s AI growth but will instead accelerate Huawei’s rise, according to Business Insider. The Trump administration is expected to enforce export licensing for powerful AI chips,

Chinas leading tech firms, including ByteDance, Alibaba (HK:9988), and Tencent (HK:0700), have reportedly stockpiled close to one million units of Nvidias (NASDAQ:NVDA) H20 AI chips in anticipation of tightened U.