Biden Administration Probes Chinese Chips; Semiconductor Stocks React
Source: bloomberg.com U.S. Launches Investigation into Chinese Chips Trade The Biden administration has initiated a trade investigation into Chinese-made legacy semiconductors, focusing on chips used in common products such as automobiles, washing machines, and telecom equipment. This move, conducted under Section 301 of the Trade Act of 1974, could lead to additional tariffs targeting older Chinese chips trade. These actions are part of an effort to counter China’s state-backed semiconductor industry, which has been criticized for underpricing chips and undermining competition. The U.S. Trade Representative, Katherine Tai, emphasized that the investigation aims to protect American semiconductor producers and ensure fair competition in the global market. Stock Market Reaction to the Announcement The news of the investigation influenced the stock market, with semiconductor stocks showing mostly positive trends during premarket trading on Tuesday. Notable players in the...