Microchips—or semiconductors—found in iPhones, computers, and advanced fighter jets, are the brains of modern life. And it seems China is falling behind in making them. Thousands of Chinese chip companies are closing, marking a 70 percent rise from the year before. What do these record closures mean for U.S.-China relations? And as the world teeters on the edge of all-out war, how much of a role will these tiny chips play?

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