China says US CHIPS Act is a threat to trade
China has criticised the new US law aimed at encouraging domestic chip production and ultimately reducing reliance on Asian production – something that China sees as a threat to trade and also an attack on Chinese business.
Earlier this week, President Biden signed into law the bipartisan CHIPS and Science Act of 2022 – which will provide USD 52.7 billion for US semiconductor research, development, manufacturing, and workforce development – with the goal of increasing the level of semiconductor manufacturing in the country and ultimately reduce the dependency on Asian production.
During a press Conference on August 10, 2022, Wang Wenbin, the spokesperson of China's Ministry of Foreign Affairs, was asked about the ministry's views on the new bill.
“It would distort the global semiconductor supply chains and disrupt international trade.” Wang Wenbin said. “China is firmly against that.
He continued to say that the protection measures within the bill has “a strong geopolitical undertone and constitute another example for the US’s practice of economic coercion.”
“How to develop itself is the US’s own business, but the approach needs to be in line with WTO rules, consistent with the principle of openness, transparency and nondiscrimination, and good for maintaining the security and stability of the global industrial and supply chains. It cannot set up barriers to normal economic and sci-tech exchange and cooperation between China and the US, still less undermine China’s legitimate development interests,” Wang Wenbin concluded.
The funds available through the new US Chips Act come with strong guardrails, ensuring that recipients do not build certain facilities in China and other countries of concern.