China's Tech Race: Can Innovation Beat the Chip Shortage?

China is making big moves to catch up in the tech world, but there are some serious hurdles. The country's top AI experts say that while China is getting better at taking risks and innovating, the lack of advanced chipmaking tools is a major roadblock. This week, two Chinese AI startups, MiniMax and Zhipu AI, had strong debuts on the Hong Kong Stock Exchange. This shows that there's growing confidence in the sector, especially as Beijing is speeding up AI and chip listings to support local tech. One expert, Yao, pointed out that China has good electricity and infrastructure. But the big problem is making enough advanced chips and having the right software to support them.China has made progress with a prototype extreme-ultraviolet lithography machine. This machine could make high-tech semiconductor chips that compete with the West. However, it's not yet producing working chips, and it might not until 2030. At a conference in Beijing, industry leaders admitted that the U. S. still has an edge in computing power because of its big investments. Lin, another expert, said that China has less money to spend, so most of its computer infrastructure goes toward delivery. But there's a silver lining. China's limited resources have pushed researchers to be more creative. They're using algorithm-hardware co-design to run large AI models on smaller, cheaper hardware. Tang Jie, the founder of Zhipu AI, which raised a lot of money in its IPO, noted that younger Chinese entrepreneurs are more willing to take risks. This is a good thing, as it's a trait usually seen in Silicon Valley.