US initiates investigation into semiconductor production in China
The Biden administration is preparing to examine if Beijing’s chip-manufacturing policies pose a risk to the economic security of the United States. Read Full Article at RT.com
TroibNews 
The Biden administration is poised to investigate whether China's semiconductor manufacturing policies pose a threat to US economic security.
The US has initiated a trade investigation into China's production of legacy chips, expressing concerns that the nation aims to dominate both domestic and international markets within the vital semiconductor sector.
In a press release issued on Monday, Trade Representative Katherine Tai stated that Beijing is utilizing extensive anticompetitive and non-market strategies, including setting and pursuing market-share targets, to achieve indigenization and self-sufficiency.
Tai asserted that these policies and practices are likely to have “detrimental impacts” on the US and other economies, further undermining the competitiveness of American industry and workers, essential US supply chains, and its economic security.
The investigation will primarily focus on China’s manufacturing of foundational semiconductors, also referred to as legacy or mature-node semiconductors. These older types of computer chips are crucial for various applications, such as automobiles, dishwashers, medical devices, aerospace, telecom networks, power generation, and military weaponry.
Additionally, the initial phase of the probe will evaluate whether the impact of Chinese actions, policies, and practices regarding the production of silicon carbide substrates leads to “any unreasonableness or discrimination or burden or restriction on US commerce.”
This inquiry is taking place during the final weeks of the Biden administration, and responsibility will shift to the incoming Trump administration set to assume office in January. The investigation will be conducted under Section 301 of the Trade Act of 1974, the same statute that then-President Donald Trump used to impose tariffs of up to 25% on approximately $370 billion worth of Chinese goods in 2018 and 2019, leading to a nearly three-year trade war with Beijing.
US Commerce Secretary Gina Raimondo indicated that recent research from her department reveals that two-thirds of US products depend on components featuring Chinese legacy chips. She added that half of US companies, including some within the defense sector, were unaware of the origins of their chips.
Characterizing the findings as “fairly alarming,” Raimondo highlighted that China’s ambition to establish more than 60% of the world’s new legacy chip capacity over the next decade is deterring investment in other regions and constitutes unfair competition.
In recent years, both China and the US have been vying for dominance in crucial technology sectors, particularly semiconductors. Washington has consistently tightened export controls to prevent Chinese companies from acquiring certain American components, citing national security concerns. In May, the Biden administration announced plans to raise tariffs on legacy semiconductors imported from China, beginning next year.
In response, Beijing has repeatedly criticized the export restrictions, arguing that they contradict globally accepted market principles.
Mark B Thomas for TROIB News
The US has initiated a trade investigation into China's production of legacy chips, expressing concerns that the nation aims to dominate both domestic and international markets within the vital semiconductor sector.
In a press release issued on Monday, Trade Representative Katherine Tai stated that Beijing is utilizing extensive anticompetitive and non-market strategies, including setting and pursuing market-share targets, to achieve indigenization and self-sufficiency.
Tai asserted that these policies and practices are likely to have “detrimental impacts” on the US and other economies, further undermining the competitiveness of American industry and workers, essential US supply chains, and its economic security.
The investigation will primarily focus on China’s manufacturing of foundational semiconductors, also referred to as legacy or mature-node semiconductors. These older types of computer chips are crucial for various applications, such as automobiles, dishwashers, medical devices, aerospace, telecom networks, power generation, and military weaponry.
Additionally, the initial phase of the probe will evaluate whether the impact of Chinese actions, policies, and practices regarding the production of silicon carbide substrates leads to “any unreasonableness or discrimination or burden or restriction on US commerce.”
This inquiry is taking place during the final weeks of the Biden administration, and responsibility will shift to the incoming Trump administration set to assume office in January. The investigation will be conducted under Section 301 of the Trade Act of 1974, the same statute that then-President Donald Trump used to impose tariffs of up to 25% on approximately $370 billion worth of Chinese goods in 2018 and 2019, leading to a nearly three-year trade war with Beijing.
US Commerce Secretary Gina Raimondo indicated that recent research from her department reveals that two-thirds of US products depend on components featuring Chinese legacy chips. She added that half of US companies, including some within the defense sector, were unaware of the origins of their chips.
Characterizing the findings as “fairly alarming,” Raimondo highlighted that China’s ambition to establish more than 60% of the world’s new legacy chip capacity over the next decade is deterring investment in other regions and constitutes unfair competition.
In recent years, both China and the US have been vying for dominance in crucial technology sectors, particularly semiconductors. Washington has consistently tightened export controls to prevent Chinese companies from acquiring certain American components, citing national security concerns. In May, the Biden administration announced plans to raise tariffs on legacy semiconductors imported from China, beginning next year.
In response, Beijing has repeatedly criticized the export restrictions, arguing that they contradict globally accepted market principles.
Mark B Thomas for TROIB News
