Donald Trump and Joe Biden endorse protectionism, while globalization was once promoted as virtuous and irreversible by previous US presidents. The global political economy has transformed drastically. China has emerged as the United States’ principal opponent, with a larger share of the global economy (18.58% in 2022) than the United States. To counter China’s high-tech ambitions, the United States has enacted the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, 2022, which incentivizes domestic semiconductor production. The recipients of incentives cannot build facilities in China and other countries of concern.
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