China is looking to challenge the United States in the field of artificial intelligence. China's tech giants have launched their own artificial intelligence models.
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The Biden administration said Monday it has launched a new investigation into ancient Chinese semiconductors that may be in everything from cars to household goods and defense systems.
The White House said in a statement that China “routinely engages in non-market policies and practices, as well as industrial targeting” of the chip industry, allowing Chinese companies to “substantially harm competition and create serious supply chain dependencies in basic semiconductors.” .
The White House added that the so-called Section 301 investigation will look into “Chinese actions, policies, and practices regarding the production of silicon carbide substrates or other chips used as inputs in semiconductor manufacturing.”
More broadly, Washington's investigation seeks to assess the United States' reliance on older Chinese chips in areas including everything from telecommunications to the electrical grid.
The new investigation represents an escalation of US pressure on China's semiconductor industry. So far, many of Washington's actions have sought to target the latest chips, particularly those used in the booming artificial intelligence sector.
So-called legacy chips are produced using less advanced manufacturing techniques. Chinese chip manufacturers are still generations behind industry leaders like TSMC, but they are capable of mass-producing older chips.
The latest investigation into ancient Chinese chips is being conducted under the Trade Act of 1974. One potential remedy that could be imposed under this law is to impose tariffs on the products in question.
The Biden administration has continued to target China's technology sector this year by increasing tariffs on imports of products from electric cars to semiconductors. The latest action comes just weeks before the current US President hands over the reins to Donald Trump.
Reuters, citing Biden administration officials, reported on Monday that the investigation into the old chips would be handed over to the Trump administration for completion.
