US Targets China With Probe Into Semiconductor Industry

The Biden administration has launched a Section 301 investigation into China's semiconductor industry, citing concerns over non-market practices, supply chain dependencies, and national security risks. The Hill reports: In a fact sheet, the White House said China 'routinely engages in non-market policies and practices, as well as industrial targeting, of the semiconductor industry' that harms competition and creates 'dangerous supply chain dependencies.'

The Biden administration said the Office of the United States Trade Representative would launch a Section 301 investigation to examine China's targeting of semiconductor chips for dominance, an effort to see whether the practices are unfairly hurting U.S. trade and take potential action. The investigation will broadly probe Chinese nonmarket practices and policies related to semiconductors and look at how the products are incorporated into industries for defense, auto, aerospace, medical, telecommunications and power. It will also examine production of silicon carbide substrates or other wafers used as inputs for semiconductors. The probe launches four weeks before President-elect Donald Trump takes office. 'The effort could offer Trump a ready avenue to begin imposing some of the hefty 60% tariffs he has threatened on Chinese imports,' notes Reuters.

'Departing President Joe Biden has already imposed a 50% U.S. tariff on Chinese semiconductors that starts on Jan. 1. His administration also has tightened export curbs on advanced artificial intelligence and memory chips and chipmaking equipment.'

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