China is intensifying its competition with the U.S. in artificial intelligence as its tech firms develop native AI models. Concurrently, the Biden administration has initiated a new investigation into China’s legacy semiconductor industry, which has critical implications for sectors like automotive, consumer goods, and defense. The White House labeled China’s practices as non-market and detrimental to competition, leading to supply chain vulnerabilities. This inquiry, part of Section 301 of the Trade Act, focuses on the production of silicon carbide substrates and may result in tariffs on these products. The investigation will be passed to the incoming Trump administration for completion.
