According to Bloomberg, the administration of current U.S. President Joe Biden will launch a trade investigation into China semiconductors in the next few days, as part of the U.S. effort to protect the security of the semiconductor supply chain.
US officials believe that semiconductors are crucial to US national security.
Photo source: The U.S. Capitol, sources familiar with the matter revealed that the investigation may lead to the United States imposing tariffs on China’s old semiconductors and related products (including medical equipment, cars and smartphones) or taking other measures to restrict imports.
The semiconductor investigation could take months to reach a conclusion, which means the team of the next U.S. president, Donald Trump, will decide whether and what measures need to be taken.
The Trump team may implement trade restrictions to protect domestic semiconductor production in the United States.
, People familiar with the matter said the Biden administration has been discussing for months whether to launch an investigation into China semiconductors under Section 301, which allows the United States to impose restrictions on countries that engage in unfair trade practices.
This week, the Biden administration decided to advance the investigation to help protect the U.S. chip industry.
Spokespersons for the National Security Council and the Office of the US Trade Representative declined to comment on the report.
At present, China has been able to produce more mature and widely available semiconductors at a lower cost than its competitors.
The Biden administration is worried that if restrictions are not imposed, China will sell affordable chips to the U.S. and even the global market, which will weaken the competitiveness of other companies and even cause these companies to go bankrupt.
Supporting the U.S. semiconductor industry has always been the focus of the Biden administration.
The Biden administration has actively taken measures to restrict the export of advanced U.S. technology to China.
In the past two years, the Biden administration has imposed export restrictions on semiconductors produced using advanced technology from the United States and its allies.
The Biden administration has also signed legislation that provides billions of dollars in incentives for chipmakers to build semiconductor factories in the United States to help the United States shift its reliance on more affordable China for making chips.
, In May this year, the Biden administration also announced that it would increase tariffs on China’s traditional semiconductors from the current 25% to 50% by 2025.
But the Biden administration believes that this is still not enough to prevent future shocks to the semiconductor market, especially as the United States is seeking to increase domestic semiconductor production.
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