China Foresees Trade Disruptions From US Chips Bill
Aug. 1, 2022—The newly passed semiconductor chip bill in the United States may disrupt international trade, according to China.
Reuters reported that, on Friday, China's commerce ministry said that the bill could have an impact on trade and could distort the global semiconductor supply chain. Because the bill has passed in both the United States Senate and House, it will go to President Biden's desk next and could be signed into law soon.
The bill aims at encouraging semiconductor companies to build plants on U.S. soil, includes $52.7 billion towards domestic chip manufacturing and research subsidies,a 25 percent tax credit for United States semiconductor manufacturing investments, and more.
Last week, the bill passed in the Senate with a 64-33 vote, and it passed in the House with a 243-187 vote.
Because this bill could make the United States a more worthy competitor for China in chips manufacturing, Reuters reported that China plans to continue to keep an eye on this situation.