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

Unfair practices and strategic risks

The Biden administration has alleged that China’s dominance stems from anti-competitive practices, including cyber intrusions, forced technology transfers, and underpricing chips by 30% to 50% — often below production costs.

Katherine Tai, the US Trade Representative, explained that these artificially low prices are forcing out competitors and consolidating China’s control over the market.

“China’s acts, policies, and practices appear to have and to threaten detrimental impacts on the United States and other economies, undermining the competitiveness of American industry and workers, critical US supply chains, and US economic security,” the statement added.