China’s chip base faces US investigation
The investigation focuses on the Chinese chip group that serves as the foundation for every device used every day, from vehicles to medical equipment. The purpose is to determine whether Beijing is creating a burden or restricting US trade activities, according to AFP on December 23, citing a notice from the Office of the US Trade Representative (USTR).
The USTR Office denounced Beijing’s actions as weakening the competitiveness of American industry and workers, as well as affecting the country’s supply chains and economic security.
China responded because the US restricted chip exports
At the press conference on December 22, USTR Katherine Tai mentioned past cases of China influencing the US, including the steel, aluminum, solar panels, electric cars and recently semiconductor industries. .
According to Ms. Tai, China has implemented policies that allow its companies to rapidly expand capacity and provide low-cost chips, which not only harms but also has the potential to eliminate fair competition. market-oriented operation.
US Secretary of Commerce Gina Raimondo cited the results of an analysis of the semiconductor supply chain in the US showing that two-thirds of US products contain Chinese chips.
“About half of the companies do not know that their products contain Chinese chips,” AFP quoted Ms. Raimondo as saying, including manufacturers of defense systems, key infrastructure and consumer electronics. .
The investigation was conducted under Section 301 of the US Trade Act of 1974, which allows the US President to impose tariffs and enforce import restrictions on any country that engages in unfair trade practices that cause harm. impact on US trade activities.
This is also the tool used by Donald Trump during his first presidential term (2017-2021) to tax China in 2018 and 2019.
The latest investigation will last a year. Based on the results, the Washington government at that time will make a decision to respond.
