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Biden Opens Sneaky New Front in Trade War Against China

Chris Miller provides an in-depth look at the U.S. administration’s new stance, look to the South Korean semiconductor firm Magnachip, via his article in Foreign Policy.

Want to understand the Biden administration’s China strategy? Set aside the South China Sea and the Quad. A more useful marker of the administration’s thinking may come from a South Korean company that few in Washington have ever heard of. Magnachip, based in South Korea, produces a type of semiconductor needed in the most advanced screens, such as those for the newest smartphones. It’s a small company, with revenues of around $500 million last year, a tiny fraction of chip industry behemoths like Intel or Taiwan’s TSMC. But the Biden administration is now blocking its purchase by a Chinese private equity fund. The fate of the deal will send a major message about how Washington is thinking about the United States’ economic relationship with China.
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