China has announced a formal investigation into alleged illegal dumping of mature or “legacy” semiconductors by US companies, marking a significant escalation in the ongoing tech conflict between the two nations, Bloomberg reports.
The move, announced by the Commerce Ministry on Thursday, is being viewed as one of Beijing’s strongest retaliatory actions against US technology sanctions to date.
The investigation will focus on the potential illegal dumping and subsidization of US-made semiconductors, according to a ministry statement. Chinese chip manufacturers have reportedly lodged complaints, arguing that US subsidies provide American firms with an unfair competitive advantage.