US probes China chip industry on ‘anticompetitive’ concerns

Published December 23, 2024
US Trade Representative Katherine Tai speaks during a press briefing at the White House in Washington, US — Reuters File Photo
US Trade Representative Katherine Tai speaks during a press briefing at the White House in Washington, US — Reuters File Photo

The United States said Monday it is opening an investigation into China’s policies for its semiconductor industry, over concerns that Beijing is turning to “extensive anticompetitive and non-market means” to undermine other economies.

The probe centers on foundational semiconductors — which go into everything from cars to medical devices — and whether China’s actions create burdens for US commerce, according to the US Trade Representative’s (USTR) office.

The fear is that Beijing’s practices undermine “the competitiveness of American industry and workers, critical US supply chains, and US economic security,” the USTR’s office added.

“We have seen time and again, a pattern of harmful impact from nonmarket policies and practices across industries that the PRC has targeted for worldwide market dominance,” said USTR Katherine Tai, referring to the People’s Republic of China.

Previous instances have included steel, aluminum, solar cells, electric vehicles and now, semiconductors, Tai told reporters on Sunday.

“This is enabling its companies to rapidly expand capacity and to offer artificially lower-priced chips that threaten to significantly harm and potentially eliminate fair, market-oriented competition,” Tai added.

Commerce Secretary Gina Raimondo said that an analysis of the US semiconductor supply chain found two-thirds of US products contain Chinese-made foundational chips.

“About half of companies didn’t know whether they had Chinese chips in their products,” she said, adding that this included firms making defense systems, critical infrastructure and consumer electronics.

In recent years, President Joe Biden has sought to shore up US chipmaking capabilities to reduce reliance on other countries.

The latest probe will initially focus on China’s foundational semiconductors production, including the extent that these are used in other products like medical devices and vehicles.

The probe is also expected to consider whether Beijing’s policies on inputs for semiconductor fabrication contribute to “burden or restriction on US commerce,” the USTR’s office said.

“This investigation is part of our broader strategy to strengthen the resilience of our supply chains and revitalise domestic manufacturing,” said National Economic Advisor Lael Brainard.

The investigation falls under Section 301 of the Trade Act, the same tool used during President-elect Donald Trump’s first administration to impose tariff hikes on Chinese products.

Officials will have a year to carry out the investigation and decide on responses.

Opinion

Editorial

Energy shock
Updated 05 May, 2026

Energy shock

The longer the crisis persists, the more profound its consequences will be.
Unchecked HIV
05 May, 2026

Unchecked HIV

PAKISTAN’S HIV surge is no longer a slow-burning public health concern. It is now a system failure unfolding in...
PSL thrills
05 May, 2026

PSL thrills

BY the end of it all, in front of fans who had been absent for almost the entire 11th season of the Pakistan Super...
Interlinked crises
Updated 04 May, 2026

Interlinked crises

The situation vis-à-vis the US-Israeli war on Iran remains tense, with hostilities likely to resume if the diplomatic process fails.
Climate readiness
04 May, 2026

Climate readiness

AS policymakers gather for the Breathe Pakistan conference this week, the urgency is hard to miss. Each year, such...
Kalash preservation
04 May, 2026

Kalash preservation

FOR centuries, the Kalash people have maintained a culture, way of life, language and belief system that is uniquely...