US: White House says China chip policy poses risks to US firms

China’s push to develop its domestic semiconductor technology threatens to harm US chipmakers and put America’s national security at risk, the Obama administration warned in a report that called for greater scrutiny of Chinese industrial policy.

China’s goal to achieve a leadership position in semiconductor design and manufacturing, in part by spending $150 billion over a 10-year period, requires an effective response to maintain US competitiveness in the industry, according to the report released Friday.

“We found that Chinese policies are distorting markets in ways that undermine innovation, subtract from US market share, and put US national security at risk,” the President’s Council of Advisors on Science and Technology said in the report.

The warnings about China could give ammunition to President-elect Donald Trump two weeks ahead of his swearing in. Since winning the election, Trump has backed up fiery campaign rhetoric toward China with a series of pronouncements on Twitter and the appointment of China hawks to key roles. Trump’s attacks have stoked fears of a trade war between the world’s two biggest economies.

Full Content: Bloomberg

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