The Office of the United States Trade Representative (USTR) has begun to investigate China's semiconductor industryconduct investigation, confirm whether there is any violation of competitive trade practices.
The investigation, based on Section 1974 of the U.S. Trade Act of 301, will examine whether basic semiconductors used in the automotive, healthcare, infrastructure, aerospace and defense industries affect competitive trade.
The US government previously accused the Chinese government of artificially lowering chip prices through large-scale state subsidies, thereby undermining the competitiveness of US chip products. The US Trade Representative's Office, however, stated that evidence shows that the Chinese government is using similar subsidies to promote exports of steel, aluminum, solar panels, electric vehicles, and critical minerals, thereby attracting more people to use Chinese-made chips.
If the investigation ultimately confirms that the Chinese government is artificially lowering chip prices to attract more industries to use Chinese-made chips, it may lead the US government to impose higher tariffs on Chinese-made chips.
A spokesperson for China's Ministry of Commerce expressed strong dissatisfaction and resolute opposition to the US government's involvement in the investigation in a related statement.
