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China begins probe into US chip grants, alleged dumping

Bloomberg
Bloomberg • 2 min read
China begins probe into US chip grants, alleged dumping
Beijing’s investigation echoes a longstanding US complaint, that China’s government openly bankrolls its domestic firms in contravention of global trade agreements. Photo: Bloomberg
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China will start an investigation into whether the US dumps lower-end chips and unfairly subsidises its own chipmakers, one of Beijing’s strongest retaliatory moves so far against American technology sanctions.

The government will look into whether the US is giving its chipmakers an unfair advantage through incentives and grants, or illegally undercutting Chinese products, the Commerce Ministry said in a statement Thursday. The probe was begun in response to protests from local industry players, the agency said.

The ministry didn’t name any company, but several US firms including Texas Instruments and Analog Devices rank among the leaders in lower-end products such as power and analogue chips. Those are ubiquitous in modern devices from cars to appliances, helping regulate power flows or translate digital signals.

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