The White House has declared a new probe into China's trade behaviors, claiming they have diminished competition in the semiconductor sector. The Biden administration asserts that China "consistently employs non-market policies and practices," which undermine competition and foster dependencies on "foundational semiconductors."
Investigation Details
The US Trade Representative's Office will oversee the inquiry, looking closely at how China's policies and practices affect "the creation of silicon carbide substrates or other wafers utilized as components in semiconductor manufacturing."
China's Response
A representative from China's Ministry of Commerce expressed to the New York Times (through Engadget) that the nation "strongly opposes and regrets" the investigation. They stated that it will "employ all necessary actions to firmly protect its rights and interests."
Ongoing Tensions
Tensions between the two nations have been escalating since 2022, following President Biden's introduction of new export regulations that limited the shipment of GPUs, CPU lithography machinery, and design software to China. Earlier this year, the US increased tariffs on products imported from China.
In 2023, China retaliated by prohibiting the use of Apple iPhones, as well as AMD and Intel CPUs, in government sectors and enterprises. In October, it also initiated an investigation into Nvidia, accusing the company of anti-monopoly infractions related to its $6.9 billion acquisition of Israeli network products provider Mellanox Technologies back in 2020. Just this month, China restricted the export of crucial minerals needed for microchip production to the US.
Whitehouse.gov | Engadget | New York Times
Source: Link
