US claws at China's chip industry fanning flames on tech confrontation. Cartoon: Carlos Latuff

The USTR's announcement of a so-called Section 301 investigation into the Chinese semiconductor industry has drawn firm opposition from the China Council for the Promotion of International Trade (CCPIT), speaking on behalf of the Chinese business community, Sun Xiao, a spokesperson for CCPIT, said on Friday at a regular press conference.

"In recent years, the US has intensified export restrictions on semiconductor products to China, including the continued addition of Chinese enterprises to export control lists. These actions have severely impacted China-US semiconductor cooperation, extending their effects to industries such as automotive and telecommunications," Sun said.

The WTO has ruled that the US Section 301 tariff measures against China violate WTO rules. The US-initiated 301 investigation into China's semiconductor industry is a clear example of trade protectionism, the CCPIT spokesperson said.

"While obstructing and restricting semiconductor cooperation with China, the US provides subsidies to its own semiconductor industry to secure a dominant position in the global market. This undermines the principles of fair competition, destabilizes the global semiconductor industrial and supply chains, and hinders the progress of the new round of global sci-tech revolution and industrial transformation," Sun noted.

The Chinese business community calls on the US to earnestly comply with WTO rules and immediately halt unilateral restrictions, and to promote industrial cooperation through dialogue and consultation, to jointly protect the security and stability of global supply chains, thereby fostering greater vitality and certainty for the world economy, Sun stressed.

The Chinese Ministry of Commerce (MOFCOM) on Monday blasted the US' announcement of the so-called Section 301 investigation into the Chinese semiconductor industry, urging the US to stop the wrongdoing and vowing to firmly defend China's rights and interests, a spokesperson for the MOFCOM said in a statement released on Monday.

The MOFCOM spokesperson noted that the Section 301 tariffs have been deemed in violation of WTO regulations and faced opposition from numerous WTO members. Furthermore, China has made several stern representations to the US, underscoring its opposition.

China has expressed strong dissatisfaction and firm opposition to the US' initiation of a Section 301 investigation, emphasizing that these investigations "carry obvious unilateral and protectionist tendencies," said MOFCOM spokesperson.

The US, through the Chips and Science Act, has heavily subsidized its domestic chip sector, allowing American companies to occupy nearly half of the global chip market share. Yet, it accuses China of so-called non-market practices and exaggerates the threat of the Chinese industry, which is a clear contradiction and entirely unfounded, read the MOFCOM statement.

A recent report on mature process chips released by the US Department of Commerce showed that Chinese-made chips account for only 1.3 percent of the US market share. China's chip exports to the US are far lower than chips imports from the US.

Global Times