Concerns over China Flooding the Market with Legacy Chips

The Chinese model of overinvestment, overcapacity, and overproduction has resulted in dumping in industries such as steel, aluminum, and solar panels. The Committee on Strategic Competition between the US and the CCP has highlighted China's growing production capabilities in legacy chips, which are older, larger chips used in various sectors. China's increasing capacity to produce these chips raises concerns about security, economic competitiveness, and export control. Despite having tools like anti-dumping and subsidy measures, multilateralizing actions may prove challenging due to the limited number of chip-producing countries.