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Washington's probe into Chinese chips questioned

By MAY ZHOU in Houston | China Daily | Updated: 2025-01-04 06:57
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A trade investigation recently launched by the Joe Biden administration into China's production of older computer chips has raised many questions about the motivation behind the US probe.

The older semiconductors, collectively called legacy chips, are widely used in automotive products, military weaponry, medical devices, dishwashers, aerospace, telecommunications, power generation and the electrical grid.

The investigation's results could lead to new tariffs or other measures that could block the products from entering the United States, a decision that will be left to the incoming Donald Trump administration.

China does not dominate the legacy chip global market but a memo by the US Commerce Department, according to The New York Times, said China was on track to dominate the supply chain by 2030.

According to the Commerce Department, the development could present risks to US national security by eroding the country's industrial base, creating supply chain choke points and potential cyberthreats.

The Dec 23 article in The New York Times, titled "US Takes Aim at China's Production of Essential Computer Chips", drew numerous comments from readers — some of whom agreed with the government and others who viewed the issue differently.

The most "recommended" comment was by "Jerry" from Boston.

"The bottom line is that American capitalist corporations should rule the world. All the liberal rhetoric about free trade and comparative advantage was just ideological cover for US corporate dominance," he wrote. "China has beaten us in global manufacturing and now we don't play by the rules we forced on everyone else."

Another comment that drew much attention was by "MisterCamera" from North Carolina, who said it is the billionaires and big corporations in the US who are worried about China's manufacturing ability.

"To me China is playing the game like any other nation. China's manufacturing boom has been a godsend for raising living standards the world over," he wrote, pointing out that the US subsidizes business and industry "all the time".

"The biggest fear right now of US billionaires is a China that is all green energy, technologically self-sufficient, has a high living standard, and makes a quality product at a lower price," he continued.

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