Beijing has reportedly issued a directive banning foreign artificial intelligence (AI) chips in state-funded data centers amid an intensifying U.S.-China tech war.

State Projects Under 30% Completion In Focus

China's government has mandated that new data center projects receiving state funding must exclusively use domestically produced artificial intelligence chips, Reuters reported on Wednesday.

The directive targets data centers that are under 30% complete, requiring them to eliminate all foreign chips or abandon any plans to acquire them, according to the report. Projects nearing completion will be evaluated individually on a case-by-case basis.

According to another report on Tuesday, China had boosted subsidies for major data centers, slashing their energy bills by up to 50% to support domestic chipmakers and strengthen global competitiveness. This ...