The Office of the US Trade Representative (USTR) has launched an investigation into China’s semiconductor industry in search of anti-competitive trade practices. The USTR is investigating China for “actions, policies, and practices” that have reduced or eliminated competition in the market for semiconductors.
The investigation is being conducted through of the US Trade Act of 1974 to investigate trade practices for “basic” semiconductors used by the automotive, health care, infrastructure, aerospace and defense industries. The White House on Monday accused China of “routinely” engaging in “non-market policies and practices, as well as industrial targeting of the semiconductor industry,” causing significant harm to its competitiveness and creating “dangerous supply chain dependencies.” Hui. statement.
If action is taken as a result of the investigation, Section 301 would allow USTR to “impose tariffs or other import restrictions”, “withdraw or suspend trade agreement concessions” or “cease either of the conduct in question” with China. Allows to enter into an agreement. or compensate the United States with satisfactory trade benefits,” according to the US Trade Act. However, these decisions will be left to President Trump’s administration and incoming USTR Jamieson Greer.
A spokesman for China’s commerce ministry said in a statement that China “strongly condemns and firmly opposes” the US investigation. According to the UN, the nation will “take all necessary measures to firmly defend its rights and interests”. ,
Tension is already at its peak between America and China. President Biden launched in China and other unnamed countries over potential vulnerabilities and threats from connected vehicles. Then in May the White House announced On Chinese imports worth $18 billion including semiconductors.
