China says U.S. chip act will distort global semiconductor supply chain

China's commerce ministry said on Friday that the major new chips act passed by the U.S. Congress will distort the global semiconductor supply chain and disrupt international trade.

The U.S. House of Representatives passed the sweeping legislation on Thursday to subsidize the domestic semiconductor industry as it competes with Chinese and other foreign manufacturers.

China will continue to monitor the progress and implementation of the U.S. act and take meaures to safeguard its legitimate rights when necessary, the ministry said in a statement.