China Bans US Chips from State-Funded Data Centers, Reuters Says

China is requiring new state-funded data centers to swap foreign AI chips with locally designed alternatives, Reuters reported, reflecting Beijing’s longstanding desire to reduce the country’s dependence on American technology including Nvidia Corp. semiconductors.

Regulators in recent weeks issued guidance requiring government-backed data centers that are less than 30% complete to remove and replace foreign chips, Reuters reported, citing two sources familiar with the matter. More advanced projects will be determined case-by-case, the news agency said.