Why did China oppose the new US law regarding semiconductors, know why Dragon is upset?

China on US Law For Semiconductors: China has opposed the new US Chip Law regarding semiconductors. Chinese Foreign Ministry spokesman Wang Wenbin said on Wednesday that the new Chips and Science Act adopted by the US would disrupt the global supply chain. This will disrupt international trade. US President Joe Biden has signed legislation worth USD 52.7 billion to support American semiconductor producers and strengthen its position in competition with China.

Under this, the semiconductor industry will get a subsidy of about $ 52 billion, but this subsidy will be given to only those companies that will not do any business with China in the field of chips for ten years. After the bill was passed, the Foreign Ministry of China had raised strong objections about it.

China opposes US chips law

The Chinese Foreign Ministry says that all these will disrupt the global supply chain and hinder international trade. Wang said that China strongly opposes this. The US is free to choose its own development methods, but they must not harm China’s development and must respect the rules of the World Trade Organization and the principles of transparency and non-discrimination. Simultaneously, Wang said that the US should protect global production and supply chains.

What is Chip 4 Alliance?

The US-led Chip 4 Alliance includes South Korea, Japan and Taiwan. The Chip4 Alliance has worried China as the move is meant to curb Beijing’s growing capabilities as a chip maker. According to media reports, China is moving towards achieving greater self-reliance in semiconductors. There is a shortage of semiconductor chips around the world amid rising tensions between China and Taiwan.

Why is Dragon worried about semiconductors?

America’s move to invite South Korea to join the Chip 4 alliance is being seen as a setback for China. China has dreamed of becoming a leader in semiconductor production by 2030 and is working rapidly to overtake the US, but the new US law could deal a big blow to China.

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