In a move that could reshape the global semiconductor landscape, China’s Ministry of Commerce announced on Thursday that it will initiate a probe into the export of low-priced chips from the United States to China. The investigation, conducted in accordance with Chinese laws and World Trade Organization (WTO) rules, aims to address concerns over unfair competition in the mature-process chip industry.
A spokesperson for the ministry revealed that Chinese chip manufacturers have expressed growing unease about the influx of U.S. chips sold at prices that undercut domestic products. “Such an act has damaged the legitimate rights and interests of China’s domestic industries,” the spokesperson stated, emphasizing that local companies are entitled to request anti-dumping and anti-subsidy investigations.
According to industry insiders, the U.S. government, under the Biden administration, has been providing substantial subsidies to its chip industry. This financial support allegedly enables American companies to gain an unfair competitive advantage by exporting mature-process chip products to China at significantly reduced prices.
The spokesperson underscored the impact of these practices on China’s semiconductor sector, noting that domestic firms are struggling to compete with the heavily subsidized U.S. imports. The probe is expected to assess the extent of the subsidies and determine whether they violate WTO regulations.
This development comes amid heightened global tensions over technology and trade, particularly in the semiconductor industry, which is crucial for a wide array of products from smartphones to electric vehicles. The outcome of the investigation could have far-reaching implications for international trade relations and the global supply chain of microchips.
Chinese experts believe that the probe could lead to the implementation of trade remedies, such as anti-dumping duties or countervailing measures, to protect domestic industries. Such actions would align with China’s rights under WTO agreements to safeguard its economic interests.
As the investigation unfolds, businesses and investors worldwide are closely monitoring the situation, recognizing that shifts in the semiconductor trade dynamics between the United States and China could influence global markets and technological advancement.
Reference(s):
Ministry of Commerce: China to launch probe into U.S. low-priced chips
cgtn.com
