U.S. Opens Investigation Into China’s Chip Market Practices

The U.S. government on Monday launched a probe into China's alleged use of "extensive anti-competitive and non-market means" to dominate the global market for legacy "workhorse" semiconductors, Paul Godfrey reported for United Press International (UPI).

China's actions are said to harm the U.S. and other economies, undercut American competitiveness, disrupt critical supply chains, and threaten U.S. economic security.

The special Section 301 investigation will examine China's practices related to "foundational" chips found in products critical to industries such as defense, aerospace, telecommunications, power infrastructure, and medical devices, according to the White House.

“Today, the Biden-Harris Administration is taking additional action to protect American workers and businesses from the People’s Republic of China’s unfair trade practices in the semiconductor sector and support a healthy domestic industry for foundational semiconductors,” the White House stated.

A notice from the U.S. Trade Representative (USTR) Office alleged that China has set aggressive market share targets as part of its push for "indigenization and self-sufficiency."

These actions are said to harm the U.S. and other economies, undercut American competitiveness, disrupt critical supply chains, and threaten U.S. economic security.

The notice cited "Made in China 2025," a strategic plan that includes numerical targets for domestic semiconductor capacity and production, as evidence of China’s ambitions for global dominance in the sector.