China Turns Legacy Chips Into a Trade Weapon

image via WIRED

September 18, 2025, 3:00 PM

• •China is investigating US chipmakers, potentially opening the door to tariffs.
• •China is taking antitrust action against Nvidia.
• •Beijing launched an anti-discrimination probe into US trade and industrial policy.
• •China is leveraging its vast domestic market in negotiations.

Amidst negotiations over TikTok, China has initiated regulatory actions targeting American chipmakers, including anti-dumping investigations, antitrust probes, and accusations of unfair trade practices. These moves, mirroring tactics previously employed by the US, aim to leverage China's market dominance in negotiations, particularly concerning tariffs and export controls. China's actions could result in significant financial penalties for American chip companies, potentially boosting Chinese competitors and impacting the global semiconductor market. This represents a strategic shift, with China now actively utilizing the same tools to challenge its main geopolitical rival.

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