China plans to invest approximately $295 billion to build and interconnect a national AI data center network by 2028, with the goal that 80% of technology, including AI chips, comes from domestic suppliers like Huawei. Huawei is expected to manufacture 3.3 million Ascend-series accelerators by 2028, potentially covering more than half of China’s domestic AI compute demand. Zhipu AI completed training of its multimodal GLM-Image model entirely on Huawei Ascend chips in January 2026, while Meituan claimed it trained its 1.6 trillion parameter LongCat-2.0 model on a domestic cluster of 50,000 chips. China’s domestic AI accelerator market share is projected to reach approximately 56% by 2026, as US export restrictions create supply gaps that Chinese policy actively fills through procurement requirements and subsidies.
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