The Biden administration announced on Monday a last-minute trade investigation into older Chinese-made "legacy" semiconductors that could heap more U.S. tariffs on chips from China that power everyday goods from autos to washing machines to telecoms gear.

The Biden administration said on Monday it launched an investigation into China's semiconductor sector, which officials claim threatens U.S. national security. Why it matters: It is a first step toward possible measures,

The Chinese government is protesting the latest American announcements of military sales and assistance to Taiwan, warning the United States that it is “playing with fire.”

President Biden authorized an additional $571 million in funding to Taiwan for military aid, prompting China to send a staunch warning to the U.S. to stop arming Taiwan.

China criticised new U.S. military aid to Taiwan on Sunday, saying the $571 million package seriously violates the "one China principle" and provisions of joint communiques between China and the U.S.