The United States launched a 301 investigation into China's chip industry policies, and the Ministry of Commerce responded!
On December 23, current US President Joe Biden asked the Office of the US Trade Representative to initiate a Section 301 investigation into China's dominant practices in basic semiconductors (also known as conventional or mature node chips) and their impact on the US economy, as well as involving China's influence on the production of silicon carbide substrates or other wafers.
The Section 301 investigation was launched four weeks before President-elect Donald Trump takes office on Jan. 20 and will be transferred to the Trump administration in January for completion, Biden administration officials said. The work could provide a ready channel for the Trump administration to begin imposing the steep 60 percent tariffs it has threatened on Chinese imports.
The Biden administration has announced that it will raise tariffs on imports of solar wafers and polysilicon (essential components for making solar panels) from China to 50 per cent from 25 per cent on January 1. Some tungsten products, which are used to make electronics and semiconductors, will be subject to a new 25% tariff.
It is worth noting that in order to contain China's development, the Biden administration also strengthened export restrictions on advanced artificial intelligence and memory chips and chip manufacturing equipment to China during his term. Traditional chips use an old-fashioned manufacturing process introduced more than a decade ago and are generally much simpler than chips used in artificial intelligence applications or sophisticated microprocessors.
Us Commerce Secretary Gina Raimondo said on Monday that her department's research showed that two-thirds of US products using chips contained traditional Chinese chips and half of US companies did not know the source of their chips, including some in the defence industry, findings that were "quite alarming".
The Biden administration will begin accepting public comments on the investigation on January 6 and plans to hold a public hearing on March 11-12. The investigation is being conducted under Section 301 of the Trade Act of 1974, the unfair trade practices statute that Trump invoked in 2018 and 2019 to impose tariffs of up to 25 percent on about $370 billion worth of Chinese imports, triggering a nearly three-year trade war with Beijing.
The trade investigation has undoubtedly further exacerbated tensions between China and the United States in the semiconductor field, while also bringing more uncertainty and challenges to the global semiconductor supply chain.
The US Section 301 investigation is obviously unilateral and protectionist. The US 301 tariffs against China have been ruled by the WTO to be in violation of WTO rules and opposed by many WTO members. China has lodged solemn representations with the US on many occasions. The US launched a new Section 301 investigation into China's chip industry policies out of repression and domestic political needs, which will disrupt and distort the global chip industry chain and supply chain, and will also harm the interests of US companies and consumers.
The US provides huge subsidies to its chip industry through the Chip and Science Act, and US companies occupy nearly half of the global chip market, but it accuses China of so-called "non-market practices" and plays up the threat of China's industry. This is clearly contradictory and completely untenable. According to the mature process chip report released by the US Department of Commerce not long ago, Chinese chips only account for 1.3% of the US market share. China's chip exports to the United States are far lower than imports from the United States.
China urges the US to respect facts and multilateral rules and immediately stop its wrong practices. China will closely follow the progress of the investigation and will take all necessary measures to resolutely safeguard its own rights and interests.
The Section 301 investigation was launched four weeks before President-elect Donald Trump takes office on Jan. 20 and will be transferred to the Trump administration in January for completion, Biden administration officials said. The work could provide a ready channel for the Trump administration to begin imposing the steep 60 percent tariffs it has threatened on Chinese imports.
The Biden administration has announced that it will raise tariffs on imports of solar wafers and polysilicon (essential components for making solar panels) from China to 50 per cent from 25 per cent on January 1. Some tungsten products, which are used to make electronics and semiconductors, will be subject to a new 25% tariff.
It is worth noting that in order to contain China's development, the Biden administration also strengthened export restrictions on advanced artificial intelligence and memory chips and chip manufacturing equipment to China during his term. Traditional chips use an old-fashioned manufacturing process introduced more than a decade ago and are generally much simpler than chips used in artificial intelligence applications or sophisticated microprocessors.
Us Commerce Secretary Gina Raimondo said on Monday that her department's research showed that two-thirds of US products using chips contained traditional Chinese chips and half of US companies did not know the source of their chips, including some in the defence industry, findings that were "quite alarming".
The Biden administration will begin accepting public comments on the investigation on January 6 and plans to hold a public hearing on March 11-12. The investigation is being conducted under Section 301 of the Trade Act of 1974, the unfair trade practices statute that Trump invoked in 2018 and 2019 to impose tariffs of up to 25 percent on about $370 billion worth of Chinese imports, triggering a nearly three-year trade war with Beijing.
The trade investigation has undoubtedly further exacerbated tensions between China and the United States in the semiconductor field, while also bringing more uncertainty and challenges to the global semiconductor supply chain.
The US Section 301 investigation is obviously unilateral and protectionist. The US 301 tariffs against China have been ruled by the WTO to be in violation of WTO rules and opposed by many WTO members. China has lodged solemn representations with the US on many occasions. The US launched a new Section 301 investigation into China's chip industry policies out of repression and domestic political needs, which will disrupt and distort the global chip industry chain and supply chain, and will also harm the interests of US companies and consumers.
The US provides huge subsidies to its chip industry through the Chip and Science Act, and US companies occupy nearly half of the global chip market, but it accuses China of so-called "non-market practices" and plays up the threat of China's industry. This is clearly contradictory and completely untenable. According to the mature process chip report released by the US Department of Commerce not long ago, Chinese chips only account for 1.3% of the US market share. China's chip exports to the United States are far lower than imports from the United States.
China urges the US to respect facts and multilateral rules and immediately stop its wrong practices. China will closely follow the progress of the investigation and will take all necessary measures to resolutely safeguard its own rights and interests.
