Semiconductor manufacturers are investing massive amounts in expanding capacity using state subsidies. The US is at the highest chip trade surplus in the past ten years, while China is experiencing the worst trade deficit of all time. Honor the Huawei spinout is back online and competing. After the US export controls in 2019, Huawei sold Honor to a Shenzhen SOE so that it could continue to operate with US technology. After being #6 in the Chinese market in Q1 2021, it climbed to #3 in Q3. US security agencies are now considering whether to blacklist Honor from trading with US firms and technology.