The White House calls for an investigation into China’s alleged anti-competitive semiconductor industry

The Office of the US Trade Representative (USTR) has launched an investigation into China’s semiconductor industry, looking for anti-competitive business practices. the US Trade Representative in China is looking for “actions, policies and practices” that have reduced or eliminated competition in the semiconductor market.

The investigation is being carried out of the US Trade Act of 1974 to study trade practices for “essential” semiconductors used in the automotive, healthcare, infrastructure, aerospace, and defense industries. The White House accused China on Monday of “routinely” engaging in “non-market policies and practices, as well as industrial targeting, of the semiconductor industry” that have caused significant harm to its competition and created “serious supply chain dependencies,” Reuters reported. Statement.

If action is taken as a result of the investigation, Section 301 allows the US Trade Representative to “impose tariffs or other import restrictions,” “withdraw or suspend trade agreement privileges” or enter into an agreement with China “either to eliminate the conduct in question…or Compensate the United States with satisfactory trade benefits,” according to US trade law. However, these decisions will be left to the administration of President Trump and incoming trade representative Jamison Greer.

A Chinese Ministry of Commerce spokesman said in a statement that China “deeply regrets and firmly opposes” the US investigation. The nation will also take “all necessary measures to resolutely defend its rights and interests,” according to the document .

Tensions between the United States and China are already high. President Biden fired To China and other countries not mentioned due to potential vulnerabilities and threats from connected vehicles. Then in May, the White House announced On $18 billion in Chinese imports, including semiconductors.