On Monday, with just weeks left in President Joe Biden’s term, the United States launched an investigation into China’s semiconductor industry.
Office of the United States Trade Representative (USTR) announced It has begun an investigation into China’s “acts, policies, and practices aimed at dominating the semiconductor industry.” China has almost a monopoly on the semiconductor market, and Chinese semiconductors are used in a variety of applications, including industrial machinery and military equipment.
The United States alleges that China uses “a wide range of anticompetitive and nonmarket measures, including the establishment and pursuit of market share goals, to achieve indigenization and self-sufficiency.” The announcement also accused China of certain policies and practices that “undermine the competitiveness of U.S. industry and workers.”
The announcement accused China of trying to “dominate domestic and global markets.”
(Photo by ADEK BERRY/AFP via Getty Images)
“This investigation will advocate for American workers and businesses, increase the resiliency of critical supply chains, and recognize the unparalleled investments being made in our industry,” Trade Representative Katherine Tai said in a press release. “This underscores the Biden-Harris administration’s commitment to support.” (Related: Lame duck Biden cancels tens of thousands of dollars in student loan debt in last ditch effort before Trump returns)
China — The size of the semiconductor market is cherished It is expected to reach $179.48 billion in 2023 and account for nearly half of new manufacturing capacity for mature node semiconductors over the next three to five years. According to In response to a December report from the Department of Commerce’s Bureau of Industry and Security (BIS).
China has a long-standing commitment to achieving “unification” with Taiwan. US orders Taiwan Semiconductor Manufacturing Co. (TSMC) to stop shipping advanced chips used in AI applications to China, Reuters reported In November. TSMC notified the US in October that one of its chips was discovered in a Chinese AI processor. According to to Reuters.
USTR’s investigation comes amid escalating trade tensions between the United States and China. BIS announced On December 2, a series of rules were enacted aimed at reducing China’s ability to produce advanced semiconductors. China quickly retaliated against the new rules by announcing export bans on certain minerals and materials essential to the production of semiconductors, batteries, and other products.
President-elect Donald Trump has vowed to impose sweeping tariffs on imports, including those from China, when he returns to the White House in January 2025. During President Trump’s first term, the United States imposed various tariffs against China as part of the contentious US-China trade war.
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