The new investigation could pave the way for the incoming Trump administration to add more tariffs.
The Biden administration announced an 11th-hour probe on Monday into China’s trade practice regarding “legacy” chips that power everything from smart appliances and phones to the electric grid and weapons systems.
The administration has already imposed 50 percent tariffs on semiconductors from China, which are set to take effect on Jan. 1. The new Section 301 probe could pave the way for the incoming Trump administration to add more tariffs on legacy chips or take other measures.
The probe was launched because evidence indicates that the Chinese regime’s attempts to dominate domestic and global chip markets “appear to have and to threaten detrimental impacts on the United States and other economies, undermining the competitiveness of American industry and workers, critical U.S. supply chains, and U.S. economic security,” the Office of the United States Trade Representative (USTR) said in a statement.
A spokesperson for the Chinese regime’s Ministry of Commerce accused the United States of “disrupting and distorting the global chip production and supply chains” and “harming the interests of American companies and consumers,” and vowed to “take all necessary measures to firmly defend its interests.”
The Biden administration will begin accepting public comments on Jan. 6. The probe will then be handed over to the incoming Trump administration for completion, officials said.
According to the Federal Register notice, the deadline for submitting comments will be set on Feb. 5, and a public hearing will be held on March 11 and March 12. It is unclear whether President-elect Donald Trump’s choice to lead USTR, Jamieson Greer, a trade lawyer and former USTR chief during Trump’s first administration, will be confirmed by the U.S. Senate by then.
The investigation will initially focus on China’s legacy chip production, downstream products that contain legacy chips, and wafers that are used to make the chips, including silicon carbide substrates.
By Lily Zhou
