China says U.S. subsidies, tax incentives for domestic chip sector are 'discriminatory'

In response to the recent U.S. moves in the chip sector, China's Ministry of Commerce (MOC) said the United States has overstretched the concept of national security, abused export controls and disrupted global semiconductor industry chains.

The United States has been providing huge subsidies and tax incentives to its domestic chip sector, and some measures have been forcing companies to abandon China and choose the United States, which is discriminatory and has violated market laws and international trade rules, distorting the global semiconductor industry chain, MOC spokesperson He Yadong said on Thursday.

The semiconductor sector is highly globalized after decades of development and this is the combined effects of resources endowment of different countries and market laws, he said.

China is committed to promoting high-level opening up and welcomes global semiconductor firms to invest in China and boost the healthy development of the global semiconductor industry chain, he noted.

In response to the U.S. Department of Commerce considering adding several Chinese chip companies related to Huawei to the sanctions list, He said China has always opposed politicizing and weaponizing economic, trade, and technological issues, but in recent years, the United States has abused export controls, unjustly sanctioned and suppressed Chinese enterprises, and seriously disrupted the global industrial and supply chains.

China considers the United States imposing sanctions on more Chinese companies and suppressing Huawei to be typical economic bullying, which violates international economic and trade rules, and damaged the global economic and trade order, he said.

While urging the United States not to adopt wrong practices, the spokesperson said China will take necessary measures to safeguard the legitimate rights and interests of its enterprises.

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(Cover image: He Yadong, spokesperson of China's Ministry of Commerce, during a regular press conference in Beijing, China, March 21, 2024. /CFP)