Tech supply chains at risk as the US launches probe into China’s legacy chip dominance

Unfair practices and strategic risks

The Biden administration argues that China’s dominance is driven by anticompetitive practices, including cyber intrusions, forced technology transfers and undercutting chip prices by 30% to 50% — often below production costs.

Katherine Tai, the US trade representative, explained that these artificially low prices drive out competitors and strengthen China’s control over the market.

“China’s actions, policies and practices appear to be having and threatening to have a detrimental impact on the United States and other economies, undermining the competitiveness of American industry and workers, critical U.S. supply chains, and U.S. economic security,” the statement said.