The Office of the United States Trade Representative (USTR) has launched an investigation into China's semiconductor industry, looking for anti-competitive trade practices. The USTR is investigating China for “acts, policies and practices” that reduced or eliminated competition in the semiconductor market.
The research is being carried out through of the U.S. Trade Act of 1974 to examine the trade practices of “foundation” semiconductors used in the automotive, healthcare, infrastructure, aerospace, and defense industries. The White House on Monday accused China of “routinely” engaging in “non-trade policies and practices, as well as industrial targeting in the semiconductor industry” that caused significant harm to its competition and created “dangerous supply chain dependencies.” ”according to the statement.
If action is taken as a result of the investigation, Section 301 allows the USTR to “impose duties or other restrictions on imports,” “withdraw or suspend concessions from trade agreements,” or enter into an agreement with China to “eliminate the conduct at issue.” .. or compensate the United States with satisfactory trade benefits,” according to the US Trade Act. However, those decisions will be left to President Trump's administration and incoming USTR Jamieson Greer.
A spokesperson for China's Ministry of Commerce said in a statement that China “firmly deplores and firmly opposes” the U.S. investigation. The nation would also “take all necessary measures to resolutely defend its rights and interests,” according to the .
Tensions between the United States and China are already high. President Biden took aim at China and other unnamed countries over potential vulnerabilities and threats from connected vehicles. Then in May, the White House announced $18 billion worth of Chinese imports, including semiconductors.
