Well, they have the only competitive and advanced AI chips and the best ecosystem that runs with it at the moment, Reason the whole world relies on them(including China to some extent). So until China can produce AI chips as good as Nvidia in all categories and with a corresponding eco-system as good as CUDA, then others will prioritise Nvidia obviously. Huawei and others first need to be able to corner the entire Chinese market before they can have a chance of challenging Nvidia around the world with better products and cheaper prices. That's the only way countries will be able to go against US sanctions to buy Huawei chips and eco-system instead of Nvidia..
Again, DeepSeek had already shown that you don't need to spend an insane amount on chips to get good AI results and China had commercialized AI far more than the US. This was posted in the last thread. Western studies have 19% of Chinese using AI extensively at work compared to 12% Americans. China has 4X the population with a higher percentage. So China far more ahead in practical usage of AI along with far more implementions in the field (mining, manufacturing, delivery, etc.) than the US.
Secondly, this widespread usage of AI is happening even as the rental market for NVIDIA's chips had collapsed in China to the point where they are cheaper to rent out in there than in the US. That means AI in China is both widespread and being put to real use in the field with ever greater acceleration without the expense in chips required by the American model.