China Challenges U.S. Chip Subsidies

China plans to investigate U.S. government subsidies to its semiconductor industry, following requests from China's mature node chip sector. The Chinese industry claims the subsidies give U.S. companies an unfair advantage and harm China's industry through low-priced exports.

China is set to launch investigations into U.S. government subsidies for the semiconductor sector, spurred by concerns from China's mature node chip industry, as announced by the commerce ministry on Thursday.

The Chinese chip industry accuses the Biden administration of providing substantial subsidies to U.S. companies, thereby granting them an unfair competitive edge, according to the ministry.

These U.S. firms have been exporting mature node chip products to China at low prices, which the ministry claims have adversely affected the rights and interests of the Chinese industry.