U.S. intensifies pressure on China's chips industry

[Anchor]

As President-elect Trump has announced a 60% tariff on China, it seems that the Biden administration's pressure on China is also intensifying.

They have launched an investigation into unfair trade practices regarding Chinese-made general-purpose semiconductors used across various industries, including automobiles and home appliances.

This is reporter Park Il-jung from New York.

[Report]

In the United States, used car prices have skyrocketed since the COVID-19 pandemic.

This was due to delays in the production of new cars caused by a semiconductor supply shortage.

These semiconductors are not cutting-edge products, but they are essential in most industries, including home appliances and medical devices.

Chinese semiconductor companies are aggressively expanding their production capacity for these general-purpose semiconductors by increasing investments in related equipment this year.

The U.S. Department of Commerce has predicted that if this continues, China will account for nearly half of the world's production capacity in three to five years.

[Gina Raimondo/U.S. Secretary of Commerce/Dec. 2: "We have to be eyes wide open about the threats from China and work together. So your businesses are strong and lead the world but also so our national security is protected."]

Amid growing tensions, the U.S. Trade Representative has launched an investigation into alleged unfair trade practices by the Chinese government, including subsidies.

This is an attempt to block China's so-called "semiconductor rise," and the pressure policy on China is not different from that of President-elect Trump.

In fact, the Biden administration has largely continued the tariffs on China from Trump's first term and has added a 50% tariff on Chinese semiconductors since January of this year.

The actual measures resulting from this investigation will be implemented during Trump’s second term and are expected to serve as a powerful tool to pressure China.

President-elect Trump has also nominated Elbridge Colby, a hardliner on China, for the position of undersecretary of defense for policy.

The pressure from the U.S. on China is becoming increasingly strong, regardless of the administration.

This is Park Il-jung from KBS News in New York.