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China Turns Legacy Chips Into a Trade Weapon


As Washington pushes for a TikTok deal, Beijing is countering with probes into American chipmakers.

And finally, Beijing also launched an anti-discrimination probe into US trade and industrial policy, accusing Washington of unfairly favoring its own chipmakers like Intel through CHIPS Act subsidies and tariffs. “Chinese officials will only impose significant penalties if the trade and economic talks break down and we are back in a tit-for-tat spiral on technology controls and punitive measures,” Triolo says. If China were to impose anti-dumping tariffs, American legacy chips could suddenly become more expensive than local substitutes, giving a competitive boost to Chinese firms like Novosense, 3Peak, and Joulwatt, Wang says.

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