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China firmly opposes the US’ CHIPS and Science Act, which comes with discriminatory clauses and seriously violates market laws and international economic and trade rules, China’s Ministry of Commerce (MOFCOM) said.
The CHIPS and Science Act, signed into law this month and part of an overall package of incentives worth in excess of $200 billion, will provide huge subsidies and tax incentives to the US domestic chip industry, which is a typical differentiated industry support policy, a spokesperson of the ministry said at an online press briefing.
Some of these clauses restrict the normal economic, trade and investment activities of relevant companies in China, and this is obviously discriminatory and seriously violates market laws and international economic and trade rules, which will distort the global semiconductor supply chain and disrupt international trade, the ministry said.
The China Semiconductor Industry Association (CSIA) had issued an official statement on Wednesday, strongly opposing the law and noting that “these provisions clearly deviate from the shared principle of being fair, open and non-discriminatory that the global semiconductor industry forged through practice over the past decades.”
The US Chips Act is intended to give China’s rivals a helping hand, said Yu Xiekang, vice chairman of the China Semiconductor Industry Association. Parts of it also clearly discriminate against the Asian country, he said without elaborating.