The United States is looking into the policies put in place by Beijing, between suspicions of dumping and the elimination of foreign competition.
Gina Raimondo, in Washington DC, May 15, 2024 (AFP / JIM WATSON)
The American government announced Monday, December 23, that it was launching an investigation to determine the extent to which Beijing is implementing “anti-competitive and anti-market means” in the semiconductor industry, in order to “dominate the global market.”
“Nearly two-thirds of American products contain chips from China, which is worrying.
Beijing seeks to dominate this market and given the methods used we have seen companies hesitate to come and invest in the United States,” denounced the American Secretary of Commerce, Gina Raimondo, during a telephone press conference.
The investigation, which will be led by the office of the White House Trade Representative (USTR), must determine whether China is creating “a dangerous supply chain dependence” for semiconductors, with the policies put in place by Beijing in this matter.
Washington fears that Chinese policies will weaken “the competitiveness of American companies and employees, essential supply chains for the United States and the economic security of the country”, specified the USTR office. This is a key question for the US government as it attempts to revive US semiconductor production through
the CHIPS Act, which plans to allocate up to $52 billion in grants to support manufacturing projects in the country.
“Evidence indicates that China is implementing a policy allowing it to dominate the sector, by allowing its companies to quickly develop production capacities and offer artificially low prices which risk threatening and potentially eliminating competition,” detailed White House Trade Representative Katherine Tai also spoke during a telephone press conference.
Investigations set to continue under Trump
The investigation will focus on so-called mature semiconductors, which equip a wide range of products ranging from medical devices to telecommunications networks and automobiles. The investigation will begin by opening it to public comments, starting January 6 and for a period of 90 days. It should therefore continue under the presidency of Donald Trump, which will begin on January 20.
The United States has taken a series of measures in recent years to restrict Chinese companies' access to advanced semiconductors as well as the equipment needed to manufacture them, to “hinder China's ability to acquire and produce the technologies necessary for its military modernization.
A policy strongly denounced by Beijing, which accuses Washington of “politicizing trade and technological issues”. China took retaliatory measures in early December, notably banning restrictions on exports to the United States of several rare metals, such as gallium and germanium, necessary for the manufacture of semiconductors.
