China has banned foreign AI chips from all new state-funded data centers, escalating the U.S.–China technology war.br According to Reuters, Beijing’s directive applies to projects under 30 completion, forcing them to remove or avoid U.S. chips from companies like AMD (NASDAQ: AMD), Nvidia (NASDAQ: NVDA), and Intel (NASDAQ: INTC).br br The policy is designed to support domestic chipmakers, including Huawei, while offering up to 50 power-cost subsidies for Chinese-built data centers.br Meanwhile, Alibaba’s Aegaeon platform now cuts reliance on Nvidia GPUs by 82, showing how quickly China is developing AI self-sufficiency.br br As of pre-market Wednesday, AMD trades at $242.68, down 2.95, as investors react to growing concerns that U.S. chipmakers could lose long-term market share in China.br Over the past year, AMD shares are still up more than 70, signaling investor confidence in its leadership in AI computing outside of China.