US new chips law will undermine global supply chains: China

Beijing [China], August 12 (ANI): China has strongly opposed the new Chips and Science Act adopted by the United States to support the local producers of semiconductors that it says will disrupt global supply chains and hamper international trade.
On Tuesday, US President Joe Biden signed into law the USD 52.7 billion Act to support US semiconductor producers and strengthen their positions in competition with China .
Chinese Foreign Ministry spokesperson Wang Wenbin said the US intends to 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 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,” Wenbin said on Wednesday.
The Chinese foreign ministry expects all these to “disrupt global supply chains and hinder international trade,” Wang said, adding that “China is 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. (ANI)