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The goal rather explicitly seems to be to extinguish it - the idea being that if you've got Zig, there should be no reason to need to write new code in C, because literally anything possible in C should be possible (and ideally done better) in Zig.

Whether that ends up happening is obviously yet to be seen; as it stands there are plenty of Zig codebases with C in the mix. The idea, though, is that there shouldn't be anything stopping a programmer from replacing that C with Zig, and the two languages only coexist for the purpose of allowing that replacement to be gradual.