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….