President Joe Biden has already implemented export controls on semiconductor technology and announced a tariff increase on Chinese chips set to take effect Jan. 1. Additional penalties could emerge as the investigation progresses.
“This investigation underscores the Biden-Harris Administration’s commitment to standing up for American workers and businesses, increasing the resilience of critical supply chains, and supporting the unparalleled investment being made in this industry,” U.S. Trade Representative Katherine Tai said.
Accusations Against China
The Federal Register notice initiating the probe cites evidence of Chinese policies such as opaque regulations, wage suppression, massive subsidies, and intellectual property theft to manipulate the semiconductor market. It also highlights risks posed by overconcentration of production in China, potentially affecting industries reliant on downstream chip-powered products like defense systems, cars, and medical devices.
China’s Response
China’s Ministry of Commerce condemned the investigation as protectionist and hypocritical, pointing to the U.S.’s own tech sector support through the CHIPS Act.
