China has issued a directive requiring state-funded data centers to exclusively use domestically produced AI chips, effectively banning foreign brands such as Nvidia and AMD. This policy mandates that projects less than 30% complete must remove foreign chips and cancel existing orders. More advanced projects can temporarily retain foreign hardware but must switch to domestic alternatives during future upgrades. This move is part of China's strategy to bolster national tech self-reliance and could significantly impact global supply chains, particularly in cryptocurrency mining, where high-performance GPUs are crucial.