US Explores Probe into Alleged Anti-Competitive Practices in China’s Semiconductor Industry
news
2 min read
White House calls for investigation into China’s alleged anti-competitive semiconductor industry
The Office of the US Trade Representative (USTR) has initiated a probe into China’s semiconductor industry to examine potential anti-competitive trade practices. According to a statement from the White House, the investigation aims to look into “acts, policies and practices” that have reduced or eliminated competition in the marketplace for semiconductors.
The probe will focus on “foundational” semiconductors used by industries such as automotive, healthcare, infrastructure, aerospace, and defense. The investigation was announced on Monday and is being conducted under Section 301 of the US Trade Act of 1974.
The White House has accused China of engaging in “non-market policies and practices, as well as industrial targeting, of the semiconductor industry” that have caused significant harm to competition and created “dangerous supply chain dependencies.” This alleged behavior is reportedly causing harm to American companies and potentially compromising national security.
As a result of the investigation, Section 301 allows the USTR to impose duties or other import restrictions, withdraw or suspend trade agreement concessions, or enter into an agreement with China to eliminate the conduct in question or compensate the US with satisfactory trade benefits. The final decision will be made by President Trump’s administration and incoming USTR Jamieson Greer.
China has responded strongly to the investigation, with a spokesperson for its Ministry of Commerce stating that it “strongly deplores and firmly opposes” the probe. The nation also pledged to take all necessary measures to defend its rights and interests.
The move marks yet another escalation in tensions between the US and China. Earlier this year, President Biden launched an inquiry into potential vulnerabilities and threats from connected vehicles in countries including China. In May, the White House imposed significant tariffs on $18 billion worth of Chinese imports, including semiconductors.
This investigation is likely to spark further controversy and potentially lead to increased trade restrictions between the two nations.
Source: www.engadget.com
