US Launches Probe Into One Of China’s Most Lucrative Industries

The United States launched a probe into China’s semiconductor industry on Monday with just weeks remaining in President Joe Biden’s term.

The U.S. Trade Representative (USTR)’s office announced it was launching an investigation into China’s “acts, policies, and practices related to targeting of the semiconductor industry for dominance.” China largely dominates the semiconductor market, with Chinese semiconductors being used in various applications such as industrial machinery and military equipment.

China uses “extensive anti-competitive and non-market means, including setting and pursuing market share targets, to achieve indigenization and self-sufficiency,” the U.S. alleges. The announcement also accused China of certain policies and practices “undermining the competitiveness of American industry and workers.”

The announcement accused China of seeking “to dominate domestic and global markets.”

“This investigation underscores the Biden-Harris administration’s commitment to standing up for American workers and businesses, increasing the resilience of critical supply chains, and supporting the unparalleled investment being made in this industry,” Trade Representative Katherine Tai said in the press release.

China — whose semiconductor market size was