US launches trade investigation into China’s ‘legacy’ semiconductor chips
Trade agency say ‘evidence indicates’ that China seeks to dominate domestic and global chip markets
The White House announced a trade investigation into “legacy” semiconductors made by China on Monday, less than a month before the new administration of president-elect Donald Trump takes power, that could impose additional tariffs on Chinese-made everyday US consumer goods from cars to coffee makers.
The inquiry falls under Section 301, a tool named after a part of the US Trade Act of 1974 that allows Washington to challenge imports on national security grounds. Given the last-minute timing, it will be up to the Trump administration whether to pursue the probe after taking over on January 20.
The investigation by the Office of the US Trade Representative (USTR) could give Trump a platform to further his threat – made during his election campaign – to impose up to 60 per cent tariffs on all Chinese imported goods.
“This investigation underscores the Biden-Harris administration’s commitment to standing up for American workers and businesses, increasing the resilience of critical supply chains, and supporting the unparalleled investment being made in this industry,” US Trade Representative Katherine Tai said in a statement.
The trade agency added that “evidence indicates” China seeks to dominate domestic and global chip markets through “extensive anticompetitive and non-market means”. These include setting and pursuing market share targets, it added.
China’s acts, policies, and practices further threaten to hurt the US and allied economies and undercut US economic security, it added.
