China does not dominate global chip production yet, but its market share is growing fast. The U.S. government estimates that China could be responsible for more than 40 percent of global capacity in foundational chips by 2032, with more than half of the world’s capacity in some segments.

The Biden administration has launched an investigation into China’s alleged “anticompetitive and non-market” chip industry practices as it prepares to pass power to President-elect Donald Trump.

The White House said the investigation stems from the Chinese government’s “non-market policies and practices, as well as industrial targeting” in the chip industry, which enable domestic semiconductor firms to “significantly harm competition and create dangerous supply chain dependencies in foundational semiconductors.