China is investigating U.S. subsidies for its semiconductor sector, alleging these harm Chinese chipmakers. This marks a latest friction point amid ongoing trade tensions between the nations, highlighting Beijing's countermeasures against Washington's efforts to restrict China's semiconductor industry,

China will launch an investigation into U.S. government subsidies to its semiconductor sector over alleged harm caused to Chinese mature node chipmakers, the commerce ministry said on Thursday.

China will investigate allegations that the US dumps lower-end chips and unfairly subsidizes its own chipmakers, in potentially one of Beijing’s strongest retaliatory moves against American technology sanctions.

Beijing investigating claims of unfair competition in mature semiconductors The "chip wars" between the US and China show no sign of cooling off as Beijing prepares to examine whether America is unfairly subsidizing its own semiconductor companies.