China is investing in developing its own chip production. Among other things, Beijing is developing a training program for chip makers and providing big subsidies to get production up and running. Which of the following is true?

Multiple Choice

China is avoiding the specialization in production that gives Taiwan an advantage in chip production.

China has an absolute advantage in the production of chips.

The United States is less competitive than China in chip production.

China has a competitive advantage in chip production.

China is using government policy to influence trade patterns.