The White House is calling for an investigation into China’s anti-competitive semiconductor industry

The Office of the US Trade Representative (USTR) has begun an investigation into China’s semiconductor industry, looking into anti-competitive trade practices. , the USTR is targeting China for “actions, policies and practices” that reduce or eliminate competition in the semiconductors marketplace.

An investigation is underway of the US Trade Act of 1974 to examine trade practices for “basic” semiconductors used by the automotive, health care, infrastructure, aerospace and defense industries. The White House accused China on Monday of “generally” engaging in “non-market policies and practices, as well as industrial concentration, in the semiconductor industry” that have caused significant damage to its competitiveness and created a “dangerous import dependency,” according to the report. statement.

If action is taken as a result of the investigation, Section 301 allows the USTR to “impose duties or other import restrictions,” “withdraw or suspend trade agreement agreements” or enter into an agreement with China “to end the conduct in question… or compensate the US for satisfactory trade benefits.” ,” according to the US Trade Act. Those decisions, however, will be left up to the incoming President Trump administration and USTR Jamieson Greer.

A spokesman for China’s Ministry of Commerce said in a statement that China “strongly opposes and strongly opposes” the US investigation. The country will also “take all necessary measures to firmly protect its rights and interests,” according to the report .

Tensions between the US and China are already high. President Biden has briefed China and other unnamed countries on the potential vulnerabilities and threats posed by connected cars. Then in May, the White House announced an 18 billion dollar amount of imports including semiconductors.