The Biden administration on Monday announced a last-minute trade investigation into traditional semiconductors made in China that could pile on more U.S. tariffs on Chinese chips used in everyday products from cars to washing machines to telecommunications equipment.
The “Section 301” investigation, which begins just four weeks before President-elect Donald Trump takes office on January 20, will be handed over to his administration in January to complete, Biden administration officials said. .
The move could offer Trump a path to begin imposing some of the steep 60% tariffs he has threatened on Chinese imports.
Outgoing President Joe Biden has already imposed a 50% US tariff on Chinese semiconductors starting January 1. His government has tightened restrictions on exports to China of advanced artificial intelligence and memory chips, as well as chip manufacturing equipment, and has also recently increased tariffs to 50% on Chinese solar wafers and polysilicon.
The office of the US Trade Representative (USTR), which will carry out the new investigation, said it aims to protect US chip producers and other markets from the massive build-up of domestic supply of chips promoted by the Chinese state.
US Trade Representative Katherine Tai said the trade agency has found evidence that Beijing is focusing on the semiconductor industry for global domination, similar to its buildup in steel, aluminum, solar panels, electric vehicles and minerals. essential.
“This allows their companies to rapidly expand their capacity and offer chips at artificially lower prices that threaten to significantly harm and possibly eliminate their competition from the market,” he told reporters on a conference call.
“Legacy” or traditional chips use older, more mature manufacturing processes and are found in a wide range of mass-market applications. They do not include advanced chips for use in artificial intelligence applications or sophisticated microprocessors.
The Biden administration will begin accepting public comments on the investigation on Jan. 6 and has scheduled a public hearing for March 11 and 12, according to a Federal Register announcement about the investigation. It is unclear whether Trump’s pick to lead the USTR, Jamieson Greer, a trade lawyer and former head of the USTR during the first Trump administration, will be confirmed by the US Senate by then.
The investigation is being carried out under the same unfair trade practices statute that Trump invoked to impose tariffs of up to 25% on about $370 billion worth of Chinese imports in 2018 and 2019, triggering a nearly-long-running trade war. three years with Beijing.
If Trump continues the investigation, it must be completed within one year of its initiation.
Connect with the Voice of America! Subscribe to our channels YouTube, WhatsApp and to the newsletter. Turn on notifications and follow us on Facebook, x and instagram.
Add Comment