In a bold rebuke, China has firmly opposed the United States’ launch of a Section 301 investigation into its semiconductor industry policies. The Chinese Ministry of Commerce, expressing strong dissatisfaction on Monday, accused the U.S. of employing unilateral and protectionist tactics that could destabilize the global semiconductor supply chain.
“The U.S. Section 301 investigation is clearly unilateral and protectionist,” the ministry declared. “Such actions will disrupt and distort global semiconductor industrial and supply chains, harming the interests of U.S. businesses and consumers.”
The tension centers around the semiconductor industry, a critical component of modern technology ranging from smartphones to automobiles. The U.S. recently enacted the CHIPS and Science Act, providing substantial subsidies to bolster its domestic chip industry. Despite these efforts, U.S. semiconductor firms already command approximately 50 percent of the global market.
Contrastingly, Chinese-made chips represent just 1.3 percent of the U.S. market share, according to a recent report by the U.S. Department of Commerce cited by the ministry. Furthermore, China’s chip exports to the United States are significantly lower than imports from the U.S., highlighting an imbalance in trade dynamics.
The Ministry of Commerce urged the United States to “respect facts and multilateral rules” and to “immediately cease its erroneous practices.” They emphasized that China will “closely monitor the progress of the investigation and take all necessary measures to defend its rights and interests resolutely.”
This clash over semiconductor policies adds another layer to the complex economic relations between the two nations. For global readers, investors, and industry professionals, the unfolding situation raises concerns about potential disruptions in the semiconductor supply chain, which could impact various sectors worldwide.
The semiconductor industry is pivotal not just for consumer electronics but also for advancements in artificial intelligence, telecommunications, and other critical technologies. Any significant shift in policies or trade relations could reverberate through global markets and technological development.
As China and the United States navigate this contentious issue, stakeholders worldwide will be watching closely, mindful of the broader implications for international trade and economic stability.
(With input from Xinhua)
Reference(s):
China opposes U.S. investigation into Chinese semiconductor industry
cgtn.com
