Trade tensions between the two largest economies in the world, and US sanction on ZTE are making people wonder if Chinese chip makers strong enough to break the US dominance. A large amount of capital is going to be poured into this venture, with China already overtaking the US in AI startup funding. But does the country have what it takes to create its own Intels and Nvidias for the long run? Our reporter Xia Cheng reports from the Global Mobile Internet Conference 2018 in Beijing, which wraps up today.

XIA CHENG BEIJING "AI is taking off in China. Here at the GMIC 2018, almost every company is showing some sort of artificial intelligence solutions. Facial recognition, machine learning, and robotics, you name it. But a high-flying industry needs good quality chips as a launch pad. I spoke with one Chinese company that's working to break the US dominance in chips."

WU QIANG VP & CHIEF CLOUD ARCHITECT, HORIZON ROBOTICS "Our unique strength is not craftsmanship but our understanding of applications and algorithms for chips. We come up with application scenarios, and create algorithms based on them, then build computer architecture based on those algorithms so that we can improve the performance of our chips. We are working with Audi, Bosch and partners in Japan and the US, to make sure our products can land in those markets to set up our own eco-system. That bodes well for our plan to have our chips embedded in 300 million autonomous cars by 2025. We have a new R&D center in Nanjing. We are recruiting people without a computer background. We're interested in their knowledge of maths, physics and biology and their passion for AI, to make them top talents. That means we won't have to import talents from overseas anymore."

XIA CHENG BEIJING "Meanwhile, the low profitability among chip startups are keeping investors at bay. But cash-rich tech firms like facebook and alibaba are entering the business. Will they shake up the industry?"