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Biden administration to launch trade probe into Chinese semiconductors - Bloomberg

investing.com 18/12/2024 - 02:56 AM

Biden Administration to Investigate Chinese Semiconductors

Investing.com– The Biden administration is preparing to launch a trade investigation into Chinese-made semiconductors in the coming days, according to Bloomberg on Wednesday.

The move aims to reduce reliance on Chinese technology viewed by U.S. officials as a national security threat. The investigation will focus on older model chips and the associated products, including medical devices, vehicles, smartphones, and weaponry.

Conducted under Section 301 of U.S. trade law, this investigation will examine unfair trade practices and could lead to further trade restrictions to protect U.S. manufacturing in a competitive global semiconductor market.

Any resulting policy decisions are likely to be made by President-elect Donald Trump’s upcoming administration. Although Biden administration officials have debated this decision for months, a recent consensus has led to the inquiry’s initiation.

Despite concerns, shares of Semiconductor Manufacturing International Corp (HK:0981) rose 1.4% and Hua Hong Semiconductor Ltd (HK:1347) gained 1.5%. Broader Chinese markets also experienced gains, with the Shanghai Composite index up 0.7% and the Shanghai Shenzhen CSI 300 rising 0.6%. Hong Kong's Hang Seng index jumped 1%.

Additionally, Reuters reported that Beijing plans to increase its budget deficit to 4% from 3% of gross domestic product (GDP) in 2025, its highest on record, while targeting GDP growth of 5% for the third consecutive year.




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