The White House wants an investigation into alleged anti-competitive Chinese semiconductor companies

The Office of the US Trade Representative (USTR) has begun an investigation into Chinese semiconductor companies, looking for ways to combat competition. The USTR is looking into China’s “acts, policies and practices” that reduced or eliminated competition in the semiconductors market.

The survey is being conducted of the US Trade Act of 1974 to investigate trade practices for “foundational” semiconductors used by the automotive, health, construction, aerospace and defense industries. The White House accused China on Monday of “consistently” engaging in “anti-market policies and practices, as well as industrial targeting, of the semiconductor industry” that severely damaged its competitiveness and created “dangerous import dependency,” according to a statement.

If the results of the investigation, Section 301 allows the USTR to “impose duties or other restrictions,” “cancel or suspend a trade agreement” or enter into an agreement with China to “stop the conduct in question … or pay the United States with profits.” of trade,” according to the US Trade Act. Those decisions, however, will be left to the incoming administration of President Trump and USTR Jamieson Greer.

A spokesman for China’s Ministry of Commerce said in a statement that China “strongly opposes and opposes” the US investigation. The country will also take “all necessary measures to protect its rights and interests,” he said .

The conflict between the US and China has already reached its peak. President Biden introduced it to China and other unnamed countries due to the challenges and risks of connected cars. Then in May, the White House announced worth $18 billion of China’s imports including semiconductors.