Mon Dec 23 16:53:41 UTC 2024: ## US Launches Investigation into China’s Semiconductor Practices
**Washington, D.C. –** The United States launched an investigation on Monday into China’s semiconductor industry policies, citing concerns about anticompetitive practices that threaten American businesses and economic security. The probe, conducted under Section 301 of the Trade Act, focuses on foundational semiconductors – crucial components in various products from cars to medical devices – and whether China’s actions are harming U.S. commerce.
USTR Katherine Tai stated that China’s non-market policies have enabled rapid expansion in semiconductor production, leading to artificially low prices that undercut fair competition. China’s share of global foundational logic semiconductor production capacity has nearly doubled in six years and is projected to reach about half the world’s capacity by 2029. This expansion, according to the USTR, discourages investment by market-oriented actors.
Commerce Secretary Gina Raimondo highlighted the pervasive use of Chinese-made chips in U.S. products, with two-thirds of U.S. products containing them, and half of companies unaware of their presence.
China denounced the investigation as protectionist, vowing to defend its interests. The investigation will take a year, and will examine the extent to which Chinese-made semiconductors are used in other products and whether Beijing’s policies on semiconductor inputs burden U.S. commerce. The move is part of a broader U.S. strategy to strengthen supply chains and revitalize domestic manufacturing.
First Piper 