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The investigation's potential ramifications could include tariffs or import restrictions on key semiconductor components from China, pending decisions from the incoming administration. China continues to enhance its production capacity of legacy semiconductors—critical during pandemic-induced shortages—even under export restrictions from the U.S. Washington's renewed focus on mature semiconductor technologies aims to contend with China's market dominance during a pivotal moment in the global technology race.
As this semiconductor dispute escalates, Beijing has condemned Washington's actions, threatening retaliation and highlighting perceived hypocrisy in U.S. subsidies for its chip sector.