by Philip Blenkinsop
LEUVEN, Belgium (Reuters) – The United States and the European Union pledged on Friday to extend for another three years their cooperation aimed at quickly detecting disruptions in the semiconductor sector, with a particular focus on chips old generation from China.
In a joint statement following a two-day meeting of their Trade and Technology Council, the two partners say they will exchange information on “non-commercial” policies and practices that they say prevail in China, and will consult on steps to address distortions in the global supply chain.
U.S. Commerce Secretary Gina Raimondo said at a news conference that China produces about 60% of older generation chips, found in cars, home appliances and medical equipment, and that this share would be maintained in the years to come.
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“We know that the Chinese government is massively subsidizing this sector, which could lead to huge market distortion. That is why we are focusing on this issue,” she said.
The US Department of Commerce has already opened an investigation into the matter, she added, adding that the EU would soon do the same and that the two sides would share their findings.
(Reporting Philip Blenkinsop; French version Alban Kacher)
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