China is considering relying on Broadcom for data centers... and US funding for Argentina amounting to $7 billion

The Chinese authorities are studying the extent to which state-supported data centers depend on the equipment of the American company Broadcom, in a new step within Beijing’s efforts to enhance the use of local technology and reduce dependence on foreign infrastructure for artificial intelligence, according to what was reported by the Financial Times.

According to the report, China's State-Owned Assets Supervision and Administration Commission (SASAC), which oversees government companies, spent recent weeks conducting a survey to determine the extent of the spread of network adapters produced by Broadcom within data centers under state control.

Preliminary results showed that the American company's equipment may represent up to 90 percent of the transformers used in these facilities, according to the newspaper. Reuters was unable to independently verify the report, and it was not possible to obtain immediate comment from Broadcom or Sasak.

The survey results may prompt the authorities to issue informal directives to government data centers to reduce the use of Broadcom equipment, as part of Beijing's campaign aimed at expanding reliance on Chinese chips and technology in the public sector.

The move comes at a time when China is intensifying efforts to achieve technological sufficiency and enhance the flexibility of supply chains, amid continuing strategic competition with the United States. Especially in semiconductors, artificial intelligence, and computing infrastructure.

Beijing provides special support to a group of smaller, specialized technology companies that it calls “little giants,” in an attempt to build local suppliers capable of competing with foreign companies in vital components.

High-performance network switches are an essential part of AI data centers; It connects the servers and processors used to train and run large models. Broadcom, along with Nvidia and Huawei, sells advanced equipment of this category in China.

According to the report, Nvidia products were previously banned from state-supported data centers, while Broadcom equipment remained widely used, which explains the authorities’ current focus on measuring the extent of reliance on it.

If the survey process turns into actual directives to reduce the use of the American company's products, it will constitute an additional step towards separating part of the Chinese government's technological infrastructure from foreign suppliers, and it could also open up more space for local companies.

These moves demonstrate that American-Chinese competition in artificial intelligence is no longer limited to advanced processors. Rather, it extends to the various components of data centers and the communication networks between them. For Beijing, the ability to build a computing ecosystem that relies more on domestic technology has become a key part of a strategy for supply chain security and technological independence.

The US Export-Import Bank (Exim Bank) intends to finance projects in Argentina worth up to $7 billion in the vital minerals and energy sectors, in a move aimed at strengthening economic cooperation between Washington and Buenos Aires, and expanding American companies’ access to strategic resources in South America, according to a document seen by Reuters.

The funding is scheduled to be announced as part of a cooperation package between the two countries in New York on Wednesday, coinciding with the meetings of the United Nations General Assembly, according to a source familiar with the matter.

The move comes at a time when the United States is working to secure greater access to vital energy and mineral resources in the Western Hemisphere, in light of the increasing importance of these resources for strategic industries and technologies.

Economic relations between Washington and Buenos Aires were strengthened during the era of Argentine President Javier Mele, who has a close relationship with US President Donald Trump, with greater convergence in economic policies and American support for the reforms adopted by the Argentine government.

Last February, the two countries announced a preferential trade and investment agreement that includes cooperation in the field of vital minerals, but the Argentine Congress has not yet ratified the agreement.

Argentina has large reserves of lithium and shale oil, in addition to other resources, while American financing will allow companies operating in the country to obtain loans to purchase equipment from American manufacturers, in addition to other uses, during the next two years.

Argentina, along with Chile and Bolivia, is part of what is known as the “Lithium Triangle,” which includes a large concentration of supplies of this metal used in electronics, electric cars, and a number of modern technologies.

Major international companies in the primary commodities sectors are already operating in Argentina, including Rio Tinto, which extracts lithium used in batteries, BHP, which is developing a copper project, and Chevron, which operates a large oil and shale gas project.

Milley's government is pushing to attract more foreign investment to strategic sectors, through a system of incentives for large investments known as "REGI", which includes the energy, mining, and infrastructure sectors.

Last month, the Italian company Eni and the Argentine government company YBF submitted a joint request to benefit from the Regie system to implement a liquefied natural gas project worth $51 billion.

Argentina expects a significant increase in its mineral exports over the next decade. Argentine Mining Minister Luis Lucero told Reuters earlier this year that by 2036 his country could export 580,000 metric tons of lithium and 1.641 million metric tons of copper annually, about five times the 2025 levels.