
the Biden administration He opened a trade investigation into China’s production of the Old Fashioned SemiconductorsThis sets the stage for potential tariffs or other trade restrictions when President-elect Donald Trump takes office in January.
The investigation, conducted under Section 301 of the Trade Code, aims to “Heritage chips“That power everyday devices from cars and home appliances to communications equipment and military systems. US officials warn that China’s aggressive expansion of semiconductor production, supported by government subsidies, threatens to take over global supply chains.
“China’s policies enable its companies to expand rapidly and offer chips at artificially low prices that threaten to significantly harm their market-oriented competition,” he said. American Trade Representative Katherine Tai. Two-thirds of US products contain Chinese-made chips, with half of companies unaware of the origin of their chips, Commerce Secretary Gina Raimondo revealed.
The investigation will examine China’s practices in producing silicon carbide substrates and other semiconductor components, with officials expressing concern that Chinese suppliers often price chips 30% to 50% lower than American competitors. The Ministry of Commerce expects China to control more than 40% of global chip capacity by 2032.
Chinese Ministry of Commerce She strongly opposed the investigation, calling it “protective” and warning that she would “take all necessary measures” to defend her interests. The ministry said that American companies dominate the global chip market and receive large government subsidies.
The investigation, which includes public hearings scheduled for March, will be handed over to the incoming Trump administration for completion. The investigation could provide Trump with a ready path to implementing proposed 60% tariffs on Chinese imports, although some industry groups have urged caution about potential supply chain disruptions.