Just a few months ago, Huawei’s chairman observed that Washington’s export controls have done little to hold China back. Instead, they have pushed the company and the Chinese state to invest far more heavily in domestic champions, accelerating an already rapid climb up the technology ladder and clearing the way for global expansion. The latest proof is in Egypt and Huawei’s offer to supply Cairo with roughly 2,000 artificial-intelligence chips. This deal is a signal that Huawei now feels confident enough to pitch its wares abroad, on the strength of a domestic manufacturing base it expects to keep scaling. 

Although this one deal won’t turn the country into an artificial intelligence powerhouse, it does expose a weakness in Washington’s export-control strategy: restrictions that slow Chinese companies at home can help them find customers abroad.

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Huawei has presented Cairo with a 12-month plan to develop AI capacity for military, surveillance, and other government applications. The proposal includes 1,408 top-end Ascend 950-series accelerators for training AI models and another 600 Ascend chips for running them. It also pairs Huawei with iFlytek, a Chinese surveillance company blacklisted by the United States. 

The computing power involved remains limited. These chips would provide........

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