CRITICAL BATTLEGROUND: SEMICONDUCTOR CHIPS
While tariff talks continue to dominate global headlines, experts say the real flashpoint is technology, semiconductor microchips in particular which power everything from electric vehicles to smartphones, computers and satellites.
The tiny but powerful chips have long been at the centre of the US-China trade war, fuelled by China’s push for semiconductor self-sufficiency and US efforts to block China’s access to advanced chip-making technology.
“The US-China tech war will likely intensify as Washington tightens export controls and Beijing accelerates its push for semiconductor self-reliance,” said Jing Qian, co-founder and managing director of the Asia Society Policy Institute’s Center for China Analysis.
Already, China has launched what analysts say might be its strongest retaliation against US restrictions on AI chip exports to China – antitrust efforts which were also used in Beijing’s high-profile probe against US chipmaker Nvidia.
On Jan 16, China’s commerce ministry began a probe into US chip exports that would examine whether US chip makers were being given unfair advantages through incentives and grants.
“Companies have been exporting related mature-process chip products to China at low prices, harming the legitimate interests of the domestic industry,” a ministry spokesperson said. “The concerns of China’s domestic industry are reasonable and they have the right to request a trade remedy investigation.”
The investigation was a direct and “calculated response” from Beijing to US policies, Jing said, one that “leveraged China’s vast market size and manufacturing capacity to assert itself as a negotiator of equal standing”.
“These actions are part of a broader strategy to unsettle US businesses and influence policymaker decisions,” Jing said, warning that they also came with risks.
“Heightened compliance costs, regulatory unpredictability and fears of arbitrary enforcement may deter foreign investment and hinder technological collaboration, potentially undermining China’s long-term objectives,” he added.
China’s antitrust laws have “grown stronger” in recent months, noted Chen.
“Antitrust investigations are meant to uncover and correct anti-competitive behaviours or violations of merger conditions,” Chen said.
“Given that China has instituted procedures for conducting antitrust investigations, they must remain grounded in antitrust principles to avoid undermining transparency and shaking investor confidence.”
“Escalation only makes sense for Beijing if forceful responses deter further adversarial policies or add pressure for reversing current US measures,” he said, adding: “I do not believe China needs to tighten antitrust regulations to (put) foreign firms at a disadvantage.”
https://www.channelnewsasia.com/east-asia/trump-china-tariffs-tactics-global-trade-war-4898221
