Tag u s commerce chief warns against china semiconductor investment binge

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Tag U.S. Commerce Chief Warns Against China Semiconductor Investment Binge

U.S. Commerce Secretary Gina Raimondo warned on Tuesday that China's aggressive investment in the global semiconductor industry poses a significant risk to national security and urged caution among American companies considering partnerships with Chinese firms.

Raimondo's comments come as China has been rapidly expanding its presence in the global chipmaking industry, with investments in companies like Intel, Micron, and Texas Instruments. The Chinese government has also been actively promoting its "Made in China 2025" initiative, which aims to boost the country's domestic chip production and reduce its reliance on foreign suppliers.

In a speech at the Brookings Institution, Raimondo said that while the U.S. government supports American companies' efforts to invest in China, it is essential to ensure that these investments do not compromise national security.

"We need to be careful about the types of investments we make in China, particularly in the semiconductor industry," Raimondo said. "We need to make sure that we're not inadvertently creating vulnerabilities that could be exploited by the Chinese government."

Raimondo's warning comes as the U.S. government has been increasingly concerned about China's growing influence in the global technology sector. In recent years, the U.S. has imposed sanctions on several Chinese companies, including Huawei, for allegedly violating human rights and engaging in espionage.

The Commerce Secretary also emphasized the importance of maintaining a strong and competitive domestic semiconductor industry in the United States.

"We need to make sure that we're investing in our own domestic chipmaking capabilities, so that we're not dependent on foreign suppliers," Raimondo said. "We need to be able to produce the chips we need to power our own economy and our own national security."

Raimondo's comments were echoed by other U.S. officials, who have also expressed concerns about China's growing influence in the global semiconductor industry.

"We're concerned about the Chinese government's efforts to acquire sensitive technology and intellectual property, and we're working to ensure that American companies are aware of the risks and take steps to protect themselves," said a senior U.S. official, who spoke on condition of anonymity.

The U.S. government has taken several steps in recent years to address its concerns about China's growing influence in the global technology sector. In 2020, the Trump administration imposed restrictions on the sale of U.S. technology to Chinese companies, and in 2021, it banned the sale of American-made chips to Huawei.

The Biden administration has continued these efforts, and has also launched a number of initiatives aimed at promoting American competitiveness in the global semiconductor industry.