The U.S. Joe Biden administration has launched an investigation into unfair trade practices regarding Chinese general-purpose semiconductors used in automobiles and home appliances. This investigation is expected to be used as the basis for imposing high tariffs on Chinese products under the second term of Donald Trump’s administration, which will be launched on January 20th next year.
The Office of the U.S. Trade Representative (USTR) announced on the 23rd (local time), “Under Section 301 of the Trade Act, we are commencing an investigation into China’s actions, policies, and practices aimed at dominating the semiconductor industry.”
“This investigation will protect American workers and businesses and strengthen the resilience of our critical supply chains,” said USTR Representative Catherine Tai.
In this investigation, U.S. authorities plan to examine how Chinese general-purpose semiconductors are applied to products related to key industries such as automobiles, medical devices, aerospace, and communications. Additionally, Chinese silicon carbide substrates and semiconductor manufacturing wafers are also included in the investigation.
USTR believes that China has used various unfair means to dominate the domestic and global markets in the semiconductor industry. Earlier this month, the U.S. Department of Commerce conducted a survey of U.S. companies on their dependence on Chinese general-purpose semiconductors, and found that 66% of the products of the companies that responded to the survey used, or may have used, Chinese general-purpose semiconductors.
If unfair practices are revealed through this investigation, the U.S. government may impose retaliatory tariffs or restrict imports. It may also recommend additional action to the president and Congress. However, since the U.S. government’s trade-related investigation usually takes several months, the second Trump administration, which will be inaugurated in January next year, is expected to take over the investigation and announce the results of the investigation.
Reporter Kim Bora [email protected]
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