The US Trade Representative said the agency found evidence that Beijing is targeting the semiconductor industry to achieve global dominance
The Biden administration on Monday announced a last-minute investigation into Chinese-made, older-technology semiconductors that could lead to more U.S. tariffs on chips from Beijing that power everyday products from cars to washing machines to telecommunications equipment.
The investigation, which began just four weeks before President-elect Donald Trump took office on Jan. 20, will be handed over to his administration in January for completion, Biden administration officials said.
The effort could pave the way for Trump to begin imposing some of the hefty 60 percent tariffs he has threatened on Chinese imports.
Outgoing President Joe Biden has already imposed 50 percent tariffs on Chinese semiconductors, effective January 1. His administration has also tightened restrictions on exports of advanced artificial intelligence chips, memory systems and chip-making equipment to China and also recently raised tariffs to 50% on solar cells and critical minerals, aimed at boosting US manufacturing.
The US Trade Representative’s office, which will conduct the new investigation, said it was aimed at protecting American and other chip makers.
U.S. Trade Representative Catherine Tye said the U.S. trade agency found evidence that Beijing is targeting the semiconductor industry to achieve global dominance, a similar tactic to its push into steel, aluminum, solar panels, electric vehicles and critical minerals.
Legacy chips use older, technologically mature manufacturing processes, and find a wide range of applications in the market. They do not include advanced chips for use in artificial intelligence applications or sophisticated microprocessors.
The Biden administration will begin accepting public comments on the investigation on Jan. 6 and has scheduled a public hearing for March 11-12, according to a Federal Register notice on the investigation.
The investigation is being conducted under Section 301 of the Trade Act of 1974, the same unfair trade practices law that Trump invoked to impose tariffs of up to 25% on about $370 billion worth of Chinese imports in 2018 and 2019, triggering a nearly three-year trade war with Beijing.
If Trump takes over the investigation, it must be completed within a year of its initiation.
Source: Skai
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