The same refrain
For several months, China and the United States have been engaged in a “semiconductor war”. The latter had launched a third round of restrictions against the Middle Kingdom at the beginning of the month; Beijing quickly responded, notably with a call to no longer obtain supplies from American companies. New episode in sight, with the launch of an investigation by the USTR (United States Trade Representative ; Office of the United States Trade Representative). Its purpose: to seek out anti-competitive business practices on the part of the Chinese semiconductor industry.
The document released a few hours ago by the White House states that “the People's Republic of China (PRC) routinely engages in non-trade policies, practices and industrial targeting of the semiconductor industry that allows PRC companies to significantly harm competition and create dangerous dependencies in the fundamental semiconductor supply chain”. However, the authors point out that “U.S. national and economic security requires a resilient and secure supply of basic semiconductors”and add that “These semiconductors are essential to key sectors of the U.S. economy, powering cars, medical devices, critical infrastructure, key aerospace and defense systems, and the goods and services we depend on every day “.
This investigation is carried out under section 301 of the American Trade Act of 1974. Furthermore, by “fundamental” semiconductors (a term which can also be translated as “basic” or “mature”), mean not really cutting edge chips. The general understanding is that this adjective describes semiconductors produced at manufacturing nodes of 22 nm and above. But you will have understood from the previous paragraph, unlike the few products engraved using cutting-edge 5, 4 or 3 nm processes that we regularly talk about (smartphone SoCs, GPUs, etc.), they represent the bulk of world production.
As reported by our colleague fromEngadgetat the end of the investigation (which will begin on January 6), the USTR will be able “to impose duties or other restrictions on imports”of “withdraw or suspend concessions from trade agreements” or conclude an agreement with China to “either eliminate the conduct in question or compensate the United States with satisfactory commercial advantages”. Given the deadlines, these decisions will be left to the discretion of the Trump administration (and more specifically to Jamieson Greeret, the future US Trade Representative).
A spokesperson for China's Ministry of Commerce said in a statement that China “deplores and strongly opposes” to the American investigation. Beijing has assured that it “will take all necessary measures to resolutely defend its rights and interests” according to the New York Times.
One more episode
Of course, all this is just another wheel in the trade war between the two powers. It comes on top of the surcharge on Chinese electric vehicles that came into force on October 30, or to cite a recent response from the other camp, the ban on exports of several rare metals (including gallium and germanium) to the United States.
Finally, let us recall that beyond the measures initially taken by Uncle Sam's country and which aimed to prevent Chinese companies from having access to cutting-edge semiconductors (via restrictions on imports and equipment) , THE CHIPS and Science Act – a vast plan of subsidies and partnership with other countries (Costa Rica, Panama, Vietnam, Indonesia, India, Kenya, Philippines and Mexico) – orchestrates a diversification of the semiconductor supply chain (in favor of the United States).
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Source :
The White House
