The Office of the United States Trade Representative (USTR) has launched an investigation into China’s semiconductor industry for anti-competitive trade practices. A White House statement said the USTR is investigating China for “acts, policies, and practices” that have reduced or eliminated competition in the semiconductor market.
The investigation is being conducted under Section 301 of the U.S. Trade Act of 1974 to examine trade practices for “basic” semiconductors used in the automotive, medical, infrastructure, aerospace, and defense industries. The White House said Monday that China “routinely” engages in “non-market policies and practices and industry targeting of the semiconductor industry,” which seriously harms competition and creates “dangerous supply chain dependencies.” He accused them of creating “relationships.” That statement.
If action is taken as a result of the investigation, Section 301 allows the USTR to “impose tariffs or other import restrictions,” “rescind or suspend trade agreement concessions,” or “eliminate the conduct in question.” China has been allowed to conclude an agreement with China. According to U.S. trade law, the United States cannot be fully compensated for trade benefits. But those decisions will be up to President Trump’s administration and incoming USTR representative Jamison Greer.
A spokesperson for China’s Ministry of Commerce said in a statement that China “strongly regrets and firmly opposes” the US investigation. According to the New York Times, the country will “take all necessary steps to steadfastly defend its rights and interests.”
Tensions between the US and China are already rising. In February, President Biden launched an investigation into China and other unnamed countries over the potential vulnerabilities and threats of connected cars. And in May, the White House announced a significant increase in tariffs on $18 billion worth of Chinese imports, including semiconductors.
