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Analysts expect the Democrats’ gaining a majority in the U.S. Congress to heighten tensions with China over Taiwan and intensify technological competition. They anticipate greater U.S. pressure to support the island and tighter restrictions on exports of processing equipment and AI technology. Beijing, meanwhile, is expected to accelerate the development of domestic technologies, while Washington seeks to contain tensions through planned meetings between the two countries’ leaders in Shenzhen and Miami, and by reviewing tariffs to ease inflationary pressures.
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