Thursday 11 August 2022 - 11:03

Beijing: US New Chips Law Will Undermine Global Supply Chains

Story Code : 1008642
Beijing: US New Chips Law Will Undermine Global Supply Chains
"The United States stated that the act aims to increase the competitiveness of US technologies and the semiconductor production, however this act provides huge subsidies to US enterprises producing chips and introduces a differentiated policy of industry support, some provisions of which, among other things, restrict the normal investment and trade and economic activities of relevant Chinese enterprises, as well as normal scientific and technical cooperation between China and the US," the diplomat said at a briefing, Sputnik reported.

The Chinese Foreign Ministry expects all these to "disrupt global supply chains and hinder international trade," Wang said, adding that "Chinais strongly opposed to this".

The United States is free to choose its own development methods, but those should not harm China's development and must respect World Trade Organization rules and principles of transparency and non-discrimination, as well as safeguard global production and supply chains, Wang said.

On Tuesday, US President Joe Biden signed into law the $52.7 billion Act to support US semiconductor producers and strengthen their positions in competition with China.