China has criticized the recently amended U.S. chip law that the Biden administration has dubbed to support local semiconductor producers. Speaking at a press conference on Wednesday, Chinese Foreign Ministry spokesperson Wang Wenbin noted that the new chip and science law will disrupt global supply chains and hamper international trade. . He believed the Biden administration deliberately passed the law in violation of international trade standards. He pointed to the intention of the United States to discourage long-term investment, trade and economic activities that companies have carried out with China.
Beijing’s critical remarks came as US President Joe Biden recently signed into law the $52.7 billion law to support US semiconductor producers and strengthen their competitive positions with Beijing. “The United States said the law aims to increase the competitiveness of American technologies and semiconductor production, however, this law provides huge subsidies to American companies producing chips and introduces a differentiated policy of support for industry, some provisions of which, among others, restrict normal investment and trade and economic activities of relevant Chinese enterprises, as well as normal scientific and technical cooperation between China and the United States,” Wang said during of a press briefing.
Furthermore, he pointed out that the main intention of the Biden administration was to disrupt global supply and harm Chinese economic activities. He stressed that Washington is free to choose its development methods but added that it must respect the rules and principles established by the World Trade Organization. “The United States must not harm China’s development and must abide by the rules and principles of transparency and non-discrimination of the World Trade Organization, as well as protect global production and supply chains.” , Mr. Wang said.
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On the other hand, supporters of the law in the Biden administration believed the executive order would ensure an uninterrupted supply of the semiconductors that power automobiles, computers and other devices in the United States. Additionally, with the advancements in technology, manufacturers of lethal weapons are also using semiconductors for better and more accurate impacts. “For decades some ‘pundits’ have said we need to ditch manufacturing in America. I never believed it. Manufacturing jobs are back. Thanks to this bill, we’re going to have even more of them,” noted Biden during a discussion. last month.
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Notably, for decades, China has beaten other nations in the semiconductor market as the leading chipmaker. Intel, a major chipmaker, derives much of its annual revenue from the industries it has established in China’s industrial zones. In addition, cheap labor costs and China’s “friendly” ties with other countries have pushed its market on the path to generating more and more profits. However, the COVID-19 pandemic and subsequent lockdown hampered the supply chain and as a result, semiconductor prices hit an all-time high globally. Some companies have even been forced to shut down operations in China, citing Beijing’s zero COVID policy. Apprehending the opportunity, the United States, with this law, tries to encourage companies to invest in Washington. Additionally, experts have noted that the Biden administration is trying to contain soaring inflation and unemployment in the country.