US Launches Investigation into China's Semiconductor Practices

The United States has initiated a Section 301 investigation into China's semiconductor industry, citing concerns over Beijing's use of anticompetitive practices that threaten U.S. economic security and undermine global supply chains. The U.S. Trade Representative's office claims that China's efforts may significantly harm market-oriented competition by increasing its global share of foundational semiconductors, which are critical in various industries. In response, China's Ministry of Commerce expressed strong dissatisfaction, labeling the investigation as protectionist and vowing to defend its rights and interests. It highlighted that U.S. semiconductor firms dominate the global market, while Chinese chips account for only 1.3% of the U.S. market. The investigation may lead to increased tariffs, with potential implications for U.S. businesses and consumers. This ongoing tech confrontation marks a significant escalation in trade tensions between the two nations.