U.S. probes China chip industry on 'anticompetitive' concerns

U.S. probes China's semiconductor industry for anticompetitive practices, raising concerns over global economic security and supply chain resilience.

The United States said on Monday (December 23, 2024) it is opening an investigation into China's policies for its semiconductor industry, over concerns that Beijing is turning to "extensive anticompetitive and non-market means" to undermine other economies.

The probe centres on foundational semiconductors — which go into everything from cars to medical devices — and whether China's actions create burdens for U.S. commerce, said the U.S. Trade Representative's (USTR) office.

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The fear is that Beijing's practices undermine "the competitiveness of American industry and workers, critical U.S. supply chains, and U.S. economic security," the USTR's office added.

Beijing slammed the move as "protectionist," vowing to defend its interests and urging Washington to halt its "wrong practices."

The investigation falls under Section 301 of the Trade Act, the same tool used during President-elect Donald Trump's first administration to justify tariff hikes on Chinese products.

"We have seen time and again, a pattern of harmful impact from nonmarket policies and practices across industries that the PRC has targeted for worldwide market dominance," said USTR Katherine Tai, referring to the People's Republic of China.