We want to hear about China’s efforts to promote the semiconductor industry

Traditional chips use older manufacturing processes introduced more than a decade ago [File]
|Picture source: AP

The U.S. Trade Representative’s Office will hold a hearing on Tuesday to “traditional” semiconductors made in China that could increase U.S. tariffs on Chinese chips, thus bringing everyday goods from cars to washing machines to telecom equipment.

The investigation, which began in December by Joe Biden, then, aims to protect the U.S. and other semiconductor manufacturers from the accumulation of domestic chip supply driven by China’s massive states. Starting from January 1, the United States will impose 50% of the U.S. semiconductors.

Traditional chips use older manufacturing processes introduced more than a decade ago, and are often much simpler than chips used in AI applications or complex microprocessors.

The Commerce Department said in December that two-thirds of U.S. products using chips have Chinese heritage chips, and half of them don’t know the origin of their chips, including some in the defense industry.

The hearing comes as President Donald Trump calls for the repeal of a $52.7 billion law to promote the U.S. chip manufacturing industry, which has awarded awards to Intel Samsung Electronics, Micron, TSMC and others.

The investigation was conducted under Section 301 of the Trade Act of 1974, and Trump cited the same unfair trade practices to impose tariffs of up to 25% on Chinese imports worth about $370 billion in 2018 and 2019, triggering a trade war of nearly three years.

The China Automobile Manufacturing Association told USTR it believes that China’s automotive chip industry “does not use anti-competitive and non-market means to achieve its goals.”

The Foundation for the Innovation Program believes that China is using the U.S. free market system and free trading policies to “get corner markets, undermine U.S. companies and have an impact on key supply chains” and will warn of “failure to take action to address the consequences of China’s subsidies and market distortions.”

The Chinese Chamber of Commerce said in a comment with the new tariffs of USTR that the “import and export of machinery and electronics” will cause higher inflation and significant harm to households, consumers, consumers, importers and exporters in the United States, as well as home companies in the industry. ”