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The Office of the US Trade Representative (USTR) has started a probe into China\u2019s semiconductor industry, looking for anti-competitive trade practices. <\/a>, the USTR is looking into China for \u201cacts, policies and practices\u201d that reduced or eliminated competition in the marketplace for semiconductors.<\/p>\n The probe is being conducted through <\/span> of the US Trade Act of 1974 to examine trade practices for \u201cfoundational\u201d semiconductors that are used by the automotive, healthcare, infrastructure, aerospace and defense industries. The White House accused China on Monday of \u201croutinely\u201d engaging in \u201cnon-market policies and practices, as well as industrial targeting, of the semiconductor industry\u201d that caused significant harm to its competition and created \u201cdangerous supply chain dependencies,\u201d according to the statement.<\/p>\n If action is taken as a result of the investigation, Section 301 allows the USTR to \u201cimpose duties or other import restrictions,\u201d \u201cwithdraw or suspend trade agreement concessions\u201d or enter into an agreement with China to \u201ceither eliminate the conduct in question\u2026or compensate the US with satisfactory trade benefits,\u201d according to the US Trade Act. Those decisions, however, will be left to President Trump\u2019s administration and incoming USTR Jamieson Greer.<\/p>\n A spokesperson for China\u2019s Ministry of Commerce said in a statement that China \u201cstrongly deplores and firmly opposes\u201d the US investigation. The nation would also \u201ctake all necessary measures to resolutely defend its rights and interests,\u201d according to the <\/em><\/a>.<\/em><\/p>\n Tensions between the US and China are already high. President Biden launched <\/a> into China and other unnamed countries over possible vulnerabilities and threats from connected vehicles. Then in May, the White House announced <\/a> on $18 billion worth of Chinese imports including semiconductors.<\/p>\n<\/div>\n