On Monday, officials said that the United States is probing China’s semiconductor policies.
It happened because of the raised concerns over anticompetitive behavior.
According to the USTR, the investigation is on essential semiconductors, which are used in automobiles, medical equipment, and other products of essence.
According to the US Trade Representative (USTR), the conduct of China may jeopardize US supply chains and economic security.
China is accused of using “nonmarket policies” to dominate global industries. Such industries included solar cells, steel, and electronics, USTR Katherine Tai said.
According to Tai, Chinese companies are imposing threats on the global market. They rapidly manufactured and sold chips at artificially low prices.
US uses Chinese-made fundamental chips are used in two-thirds of its products.
She added most of these US companies, especially in the main infrastructure and defense.
They are unaware of the fact that they are using chips made in China. President Joe Biden has focused on domestic chip manufacturing.
According to a statement by the USTR, the investigation will be used to determine whether the China semiconductor regulations impede the U.S. trade.
According to Brainard, National Economic Adviser, the aim is to re-establish domestic production and build resilience in supply linkages.
The investigation comes under Section 301 of the Trade Act, which had earlier been used to place tariffs on Chinese imports.
The USTR said the US government will have a year to complete the investigation. This effort embodies more comprehensive tactics to improve the competitiveness of the US. It indicates economic security against unfair trade practices.
