Cramer says China faces challenges now that the U.S. market for A.I. chips is expanding

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Cramer says China faces challenges now that the U.S. market for A.I. chips is expanding
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CNBC's Jim Cramer discussed on Wednesday the challenges China is facing now that the U.S. market for chips used by AI software is heating up.

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which currently dominates the market. But the U.S. government has blocked exports of these powerful semiconductors to China, and Cramer doesn't think China's homegrown semiconductor companies can keep up with U.S. production, especially with AMD now joining the fray.

"Without these chips, China simply can't build out the kind of artificial intelligence that the western world's embracing," he said. China has become weak after two presidents heavily dampened its trade with the U.S., Cramer said, noting that it has fallen behind Mexico and Canada in recent trade figures. He thinks it will take an enormous stimulus package — much larger than what the government is"I think things are getting desperate in China: they can't grow, they're being left behind in tech — can't even steal these high-end super chips anymore," Cramer said.

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