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The older-style chips are crucial for a wide array of appliances and other machinery, including weaponry.
By Ana Swanson and Paul Mozur
Ana Swanson reported from Washington and Paul Mozur from Taipei, Taiwan.
The Biden administration on Monday initiated a trade investigation into China’s production of older types of computer chips that are integral for cars, dishwashers, telecom networks and military weaponry.
The investigation may simply result in price lists or other measures aimed at preventing Chinese chips from entering US markets; The decision on what approach, if any, to take would be up to the new Trump administration.
In industry after industry – from metal to ships, solar panels to electric cars – China has poured money into world-class construction production facilities, creating a wave of cheap products that end up flooding global markets. . American corporations, along with those in many other countries, finding themselves unable to compete, closed their doors, leaving Chinese corporations in much of the global market.
U. S. officials worry that the semiconductor industry will be next. Chinese corporations have been increasing their production of chips, that is, older types of semiconductors that continue to power a wide diversity of machines and devices. China is building more new semiconductor factories than any other country, a progression that U. S. officials say threatens the viability of microchip factories in Europe and the United States.
Katherine Tai, the U.S. trade representative, said in a call on Sunday that China’s policies were enabling its companies to rapidly expand and to “offer artificially lower-priced chips that threaten to significantly harm, and potentially eliminate, their market-oriented competition.”
This affects supply chains that “are increasingly subject to problems that can be used to economically limit other countries,” he said.
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