Chinese Firms Including Lenovo Shift Focus To AI PC Market in Response to US Tariffs

• China’s tech companies are increasingly shifting to AI-powered hardware.
• Lenovo, the world’s largest PC maker, recently unveiled a new suite of AI PCs at the Mobile World Congress Barcelona.
• Analysts predict that U.S. President Donald Trump’s tariffs on goods imported from China will slow PC sales.

Chinese technology companies, such as Lenovo and Honor, are pivoting their focus toward the rapidly growing AI PC market as they navigate the challenges posed by escalating U.S. tariffs.

With rising trade tensions threatening traditional hardware exports, Chinese firms are investing heavily in AI-driven PCs and hardware to stay competitive globally.

This strategic shift underscores another facet of the fierce AI race between China and the U.S., as both countries look to lead the next wave of computing.

China Focuses on AI PCs

Lenovo, the world’s largest PC maker, unveiled a new suite of AI PCs at Mobile World Congress Barcelona on Sunday.

The China-based company has been aggressively advancing its efforts in the AI PC market over the past few years, aiming to differentiate itself in an increasingly competitive industry.

Lenovo’s biggest unveiling at MWC was the AI Display, the company’s new concept featuring a discrete neural processing unit inside the screen.

The new display can automatically rotate and elevate itself to give users the best view while also adding functionality to non-AI desktop and laptop PCs.

“With the AI Display with NPU inside, non-AI PCs will be able to use Large Language Models, receiving commands from the user, analyzing and recognizing the intent, and allowing the Assistant to execute the request,” Lenovo wrote in a news release.

Meanwhile, Chinese smartphone giant Honor announced a $10 billion investment to help create an “intelligent phone,” which the company says will feature “purpose-built, human-centric AI designed to maximize human potential.”

Honor CEO James Li unveiled plans to transform the company into an “AI device ecosystem company.”

The plan includes three steps focusing on three different eras of AI: the Agentic AI era, the Physical AI era, and the AGI (Artificial General Intelligence) era.

“I call on the industry to be truly open so that we can fully embrace this exciting AI future. Let’s do it together,” Li said at MWC.

The company will build its “super-intelligent” smartphone through partnerships with various tech firms, including Google and Qualcomm.

U.S. Tariffs May Slow PC Sales

The move towards AI PCs comes amid U.S. President Donald Trump’s new tariffs on goods imported from China, which analysts have predicted will slow PC sales.

As most PCs are produced in China, Trump’s additional 10 percent tax on Chinese exports is likely to slow down PC purchases, IDC reported.

Jitesh Urbani, research manager at IDC’s Worldwide Mobile Device Trackers, said : “Price hikes stemming from tariffs in the US combined with subdued demand are leading to a negative impact within the largest market for PCs.

“However, the weakness among consumer demand is universal as macro issues persist. There are still some silver linings, though: workstation volume should remain healthy, along with near-term tablet demand in China boosted by consumer subsidies.”

According to IDC, U.S. PCs accounted for one in four units sold in 2024, making up a significant portion of the global market.

The Rise of AI PCs

Leading technology firms in the U.S. have also shifted to AI-powered hardware, with many leading the way with AI PCs.

The motivation behind embedding AI into PCs stems from wanting to provide users with more responsive AI experiences.

By processing AI tasks locally, these devices can offer improved performance and enhanced security compared to cloud-dependent solutions.

Microsoft unveiled Copilot+ PCs last year with features allowing users to generate AI images in “near real-time” and live audio captioning to help bridge language barriers.

However, Microsoft came under fire for its controversial Recall feature, which sparked security and privacy concerns.

Meanwhile, Dell has introduced the Dell AI Factory, a suite comprising AI-enabled PCs, servers, storage solutions, and advisory services.