Increasing tariffs on imports of Chinese products is among President Donald Trump's top agendas starting next year. The reason given is to protect the interests of local industries. Now President Biden's administration has initiated a new investigation into China's semiconductor industry that produces previous-generation chips.
In the investigation, 2/3 of local companies use old chips imported from China. These chips are used in washing machines, vehicles, telecommunications equipment and even some military equipment. More than half of the manufacturers said they did not know the origin of the chips used in their products.
The United States says that the production of legacy chips in China receives government subsidies that will impact other manufacturers who cannot compete with the low prices offered. After the investigation is conducted, it opens the way for President Trump to impose tariffs of up to 60% on Chinese chip imports to the United States.
China's Ministry of Commerce issued a statement saying that the chip investigation is an action that will harm American firms and disrupt the global chip supply chain. Beijing will take all necessary measures to defend its rights and interests.