China has labeled the Chips and Science Act, which was recently signed into law in the US, as discriminatory. The act restricts the use of US semiconductor production technology in China.
The Chips and Science Act attracted the ire of Chinese officials even before it gained legal force. It offers federal subsidies for American tech companies that would expand semiconductor production in the US. However, subsidy recipients are barred from investing and expanding production in China. Consequently, Beijing condemned the legislation signed by Joe Biden and stated that the act was explicitly anti-Chinese.
The opponents of the Chips and Science Act believe that the White House is following an industrial policy that is framing regular economic and scientific issues as matters of security and politics. Some experts think that in the end, US expectations will not be met. China would likely be negatively affected by the Сhips and Science Act after it comes into force. However, the US law will boost Chinese economic growth and attract more independent investment to the People’s Republic of China.
