On Monday, December 23, the administration of US President Joe Biden announced a trade investigation into Chinese-made semiconductors, which could result in US tax tariffs on chips from China increasing even more significantly.
On Monday, December 23, the administration of US President Joe Biden announced a trade investigation into Chinese-made semiconductors, which could result in US tax tariffs on chips from China increasing even more significantly.
According to Reuters, the investigation will later be handed over to the administration of President-elect Trump, whose inauguration is scheduled for January.
US Trade Representative Catherine Tsai said Beijing is aiming for global dominance in the semiconductor industry, explaining the logic behind US sanctions.
“Chinese companies are rapidly expanding capacity and offering artificially low prices for chips, which threatens to cause significant harm and potentially destroy market competition,” she told reporters.
The Office of the US Trade Representative said the new investigation is aimed at protecting American and friendly chipmakers from a massive surge in Chinese supply.
According to the publication, these efforts by the Joe Biden administration could offer Trump a ready path to begin implementing the 60% tariffs on Chinese imports that he had previously threatened.
Meanwhile, President Joe Biden has already imposed a 50% US tariff on Chinese semiconductors, which will take effect on January 1. In particular, his administration has tightened export restrictions on advanced developments for artificial intelligence, memory chips, and chip manufacturing equipment.
A Biden administration official said that in addition to examining the impact of the imported chips themselves, the investigation will also look at their incorporation into components and end-use goods for critical industries, including defense, automotive products and medical equipment.
US Commerce Secretary Gina Raimondo said that her department's research shows that two-thirds of American products that use chips contain Chinese products, and half of American companies did not even know the origin of their chips, including some companies in the defense industry.
Previously, dev.ua wrote that the US intends to launch another major wave of sanctions against China's semiconductor industry, restricting exports for 140 companies, including chip equipment manufacturer Naura Technology Group.
In addition, the US Department of Commerce was to propose for public review a document banning all Chinese software and hardware in vehicles due to national security concerns.
