China offers up to 50% electricity subsidies to tech firms using domestic AI chips over U.S. ones.

China is offering up to 50% subsidies on electricity costs for major tech firms like ByteDance, Alibaba, and Tencent, provided they use domestically produced AI chips instead of U.S.-made ones like Nvidia’s. The move, being implemented in provinces including Gansu, Guizhou, and Inner Mongolia, aims to support local semiconductor development and reduce reliance on foreign technology amid ongoing U.S. export restrictions. The subsidies help offset higher operating costs of less energy-efficient domestic chips, reflecting Beijing’s broader push for technological self-reliance in artificial intelligence and computing infrastructure.