The US Trade Representative’s Office (USTR) has announced the launch of a Section 301 investigation into China’s semiconductor industry policies, which is clearly unilateral and protectionist in nature, and China strongly opposes this move, said China’s Ministry of Commerce. (Read more: US announces new Section 301 probe into Chinese chips, targets legacy semiconductors)
The US’s previous 301 tariffs on Chinese goods were ruled by the World Trade Organization (WTO) as violations of its rules and faced opposition from many WTO members and China has repeatedly lodged stern representations with the US on this matter, it said.
By launching a new 301 investigation into policies related to China’s chip industry, motivated by a desire to suppress China and domestic political considerations, the US will disrupt and distort global semiconductor supply chains, harming both U.S. businesses and consumers. This is yet another misguided action, the ministry said,
While providing massive subsidies to its own chip industry through the CHIPS and Science Act and dominating nearly half of the global chip market share, the U.S. accuses China of so-called “non-market practices” and exaggerates the threat posed by Chinese industry, which is blatantly self-contradictory and completely baseless, it said.
A recent report by the U.S. Department of Commerce on mature-process chips revealed that Chinese-made chips account for only 1.3% of the U.S. market share and China’s chip exports to the U.S. are far lower than its imports from the US it noted.
China urges the US to respect facts and multilateral rules, and to immediately cease its wrongful actions, and China will take all necessary measures to resolutely safeguard its rights and interests, it added.