Chip Photo: VCG

TheMKsports China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) voiced support for Chinese chip firms in invoking WTO rules to protect their rights and counter unfair US competition.

The statement came after China's Ministry of Commerce (MOFCOM) on Thursday acknowledged concerns raised by domestic chip industries about substantial subsidies provided by the Biden administration to the US chip sector, which grant US firms an unfair competitive edge. "If domestic industries file an application request, the Chinese investigating authority would evaluate such applications in line with China's laws, regulations, and WTO rules and initiate investigations if deemed necessary," a spokesperson for the ministry said in a statement.

"The CCCME pays great attention to and support Chinese chip firms to use WTO rules to safeguard its legitimate rights and interests," the group said.

The CCCME said that, in addition to imposing a series of discriminatory restrictions and unfair competition tactics, the Biden administration has subsidized US chipmakers heavily through direct funding, tax incentives, and policy measures. These actions have distorted competition, giving US firms an unfair advantage.

The chamber also emphasized that such actions significantly disrupt the global semiconductor supply chain and undermine the normal operation and legitimate rights of Chinese firms.

A fair market environment is crucial for the global semiconductor industry's recovery and the sustainable development of chip products and technologies, the CCCME said, acknowledging concerns from China's domestic industry over unfair US chip pricing.

The chamber appeals to MOFCOM to thoroughly assess industry concerns, investigate the matter in line with WTO rules and domestic laws to safeguard the interests of Chinese industries and foster a fair and competitive market environment.