The United States to Hold Hearing on Chinese-Made Advanced Chips

The United States Trade Representative’s Office (USTR) will hold a hearing next Tuesday, March 11th, to investigate “legacy” chips manufactured in China. These chips are widely used in everyday items such as cars, washing machines, medical equipment, and telecommunications devices.

This investigation was initiated by the Biden administration and started in December last year. Its aim is to protect American and other semiconductor manufacturers from the impact of cheap chips subsidized by the Chinese government. Since January 1st this year, the U.S. has imposed a 50% tariff on Chinese semiconductors.

According to Reuters, the new U.S. government may impose additional tariffs on semiconductors from China.

The Department of Commerce stated in December last year that two-thirds of American products contain chips made in China, and half of American companies do not know the source of their chips, including defense industry firms. This situation is described as “quite worrying.”

Reports suggest that the Foundation for American Innovation is expected to attend the hearing. The foundation plans to point out during the hearing that China is exploiting the U.S. free market system and free trade policies to “monopolize markets, harm American businesses, and gain leverage over critical supply chains.” They urge the Trump administration to take action in response.