Closed Loop: Chinese Giants Shift to Local Hardware to Bypass Sanctions

American export restrictions have definitively shaped a sovereign Chinese technology market. On June 29, 2026, two major deals were revealed that confirm the autonomization of the PRC’s economy. IT giant Tencent signed a $3 billion contract with Chinese memory manufacturer CXMT to supply server DRAM for AI computing, completely bypassing Western suppliers.

Synchronously, Chinese AI startup Momenta launched an IPO in Hong Kong aiming to raise $751 million. Approximately 60% of these funds will go toward autonomous driving R&D (robotaxi) and AI infrastructure. Both cases demonstrate the resilience of the Asian macroeconomy: Chinese capital invests in local startups, which purchase hardware from local manufacturers to train physical AI (Embodied AI). Washington’s strategy to cut Beijing off from advanced technologies has resulted in China rapidly building an independent ecosystem where money circulates without regard for Wall Street.

Source: Reuters / CXMT / Tencent / Momenta Global