Chinese companies are heavily incentivized to use Chinese chips instead of American since Trump blocked trade with China.
China used to parallel import the chips they needed, and even repackage them with more onboard RAM, making more powerful Nvidia solutions available in China than in the rest of the world.
But Trumps behavior towards China made the Chinese government decide to limit the use of American technologies for AI.
There was a point where Nvidia exports to China was basically at a standstill, because China forbade the purchase of a new cut down Nvidia chip made for the Chinese market to circumvent American trade restrictions.
China is building their own complete stack now, replacing everything with Chinese technologies, right from the AI chips to the entire AI software framework.
So not only does Nvidia and other American companies lose hardware sales, the entire stack will be threatened with a Chinese alternative, that will likely compete with American options on the international market in the future. If Cuda loses its current dominance, it will be easier for competitors to take marketshare from Nvidia.
Hopefully this will be good for consumers worldwide.