America is investigating “anti-competitive” Chinese practices…and Beijing is responding

On Monday, the US government announced an investigation into “anticompetitive and anti-market measures.”
She indicated that China may have adopted it, in order to “control the global market.”

Semiconductor market

US Commerce Secretary Gina Raimondo said: “Nearly two-thirds of US products contain goods from China, which is a matter of concern.
She added: “Beijing seeks to control this market. Because of the methods used, we have noticed a reluctance among some companies to invest in the United States.”
The investigation, which will be conducted by the Office of the US Trade Representative, will determine whether China is creating a “dangerous dependence on the supply chain” for semiconductors through its policies in this regard.

Chinese opposition

For its part, the Chinese Ministry of Commerce announced in a statement “absolute opposition” to the investigation, which in its view has a “clearly unilateral and protectionist nature.”
It also called on the United States to stop its “bad practices,” while Beijing affirmed that it “will follow the developments of the investigation and take the necessary measures to resolutely defend its rights and interests.”
Washington fears that Chinese policies will weaken “competitiveness among American companies and employees, the United States’ essential supply chains, and the country’s economic security,” according to the Office of the US Representative for Trade Affairs.

Revitalizing the semiconductor sector

The US government seeks to revive the semiconductor sector, especially through a law that provides aid worth $52 billion to encourage companies to open branches in the country.
The investigation focuses on mature semiconductors used in a wide range of products, from medical devices to cars to communications networks.
In recent years, the United States has taken a series of measures to restrict Chinese companies’ access to advanced semiconductors, as well as the equipment needed to manufacture them, in order to “undermine China’s ability to acquire the technologies needed to modernize its military.”

Imposing restrictions

Beijing accused Washington of “politicizing technological and commercial issues,” taking several measures in early December in response to the American measures.
At the beginning of this month, the United States announced the imposition of new export restrictions aimed at limiting China’s ability to manufacture advanced electronic chips.