The probe centers on foundational semiconductors - which go into everything from cars to medical devices - and whether China's actions create burdens for US commerce, said the US Trade Representative's (USTR) office.The fear is that Beijing's practices undermine "the competitiveness of American industry and workers, critical US supply chains, and US economic security," the USTR's office added. Beijing slammed the move as "protectionist," vowing to defend its interests and urging Washington to halt its "wrong practices."The investigation falls under Section 301 of the Trade Act, the same tool used during President-elect Donald Trump's first administration to justify tariff hikes on Chinese products. "We have seen time and again, a pattern of harmful impact from nonmarket policies and practices across industries that the PRC has targeted for worldwide market dominance," said USTR Katherine Tai, referring to the People's Republic of China."This is enabling its companies to rapidly expand capacity and to offer artificially lower-priced chips that threaten to significantly harm and potentially eliminate fair, market-oriented competition," Tai added.AFP

China chip industry probed for being non-competitive

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