The US has launched a probe into China’s alleged anti-competitive measures to support its semiconductor industry, just weeks before President-elect Donald Trump takes office. The investigation, conducted under Section 301 of the US Trade Act, targets China’s tactics to dominate the global market and achieve self-sufficiency in chip manufacturing.
US officials claim that China is using “extensive anti-competitive and non-market means” to set market share targets and achieve dominance in the industry. This has sparked fears of disruptions to international supply chains and raised concerns about national security.
The probe focuses on legacy semiconductors, which are used in critical industries such as automotive, healthcare, and infrastructure. If the US imposes import restrictions or new tariffs, it could significantly impact global trade.
China has been making significant investments to scale up its chip manufacturing capacity, driven by subsidies from Beijing. Analysts estimate that China is on track to double its production capacity by the end of the decade.
The Chinese commerce ministry has strongly opposed the investigation, warning that it would disrupt global supply chains and harm US companies and consumers. Beijing has also threatened retaliation, saying it will take “all necessary measures” to defend its rights.
US officials fear that relying on Chinese suppliers could create national security issues and lead to similar problems seen in the solar panel market, where low-cost imports led to western producers struggling to compete. The probe highlights the growing tension between US and Chinese trade practices, with the Biden administration handing over to Trump amid concerns about the semiconductor industry’s impact on global supply chains.
Source: https://www.ft.com/content/072d391c-93af-40c6-b020-a4a36d31d4c8