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The Chip Dilemma: China's Dependence on U.S. Technology Amidst the Trade War

At the height of the China-U.S. trade war, an unexpected development unfolded: the Chinese government exempted over 90% of U.S. automotive chips from tariffs. This decision affected key players in the semiconductor industry, including Qualcomm and Nvidia, and encompassed critical components ranging from microcontroller units (MCUs) to the cutting-edge chips used in autonomous driving systems. This move not only highlights China’s technological dependency but raises pressing questions regarding the sustainability of its own automotive industry.