The United States has ended the previous government's investigation into China's chip trade and will not impose additional tariffs on Chinese chips for the next 18 months

On the 23rd, the U.S. government announced that it would impose tariffs on Chinese chips in 2027, concluding the trade investigation initiated by the previous Biden administration against Chinese chips. U.S. media analysis indicates that although the U.S. government claims that China's practices in the chip industry "harm U.S. interests," the final decision is to refrain from imposing additional tariffs on Chinese chips for at least 18 months. Bloomberg reported that the postponement of new tariffs is the latest signal from the U.S. government seeking to solidify the U.S.-China "truce" agreement and stabilize U.S.-China relations.

The U.S. Trade Representative's Office launched a Section 301 investigation into China's mature process chip industry in December last year, aiming to clarify the impact of this industry on the U.S. economy. After nearly a year of soliciting opinions and assessing data, the U.S. side announced the results this Tuesday. According to Reuters, the U.S. Trade Representative's Office stated in a press release that China's pursuit of dominance in the semiconductor field is "unreasonable" and constitutes a burden or restriction on U.S. business activities, thus allowing the U.S. to take action.

The New York Times reported that the government will first impose a 0% tariff on semiconductors imported from China and plans to raise tariffs starting in June 2027, with the specific rate yet to be determined, "at least 30 days in advance."

The latest statement from the U.S. government marks the conclusion of a year-long investigation into traditional Chinese chips. The New York Times stated that these chips are widely used in smartphones, automobiles, home appliances, telecommunications networks, and even military weapons. The report noted that in recent years, lawmakers from both parties in the U.S. have increasingly expressed concerns about the deepening reliance on these products, which may pose a "national security threat," as "China has invested heavily in the production of older chips, making it difficult for U.S. factories producing similar products to maintain operations."

"This sector has developed rapidly in China in recent years. The U.S. is attempting to alleviate domestic companies' competitive pressure in the mature chip market through tariff measures while reducing dependence on Chinese chip supplies," said Zhou Mi, a researcher at the Ministry of Commerce Research Institute, to Global Times reporters on the 24th. He added that the chip industry has a highly globalized characteristic, and relying solely on tariff measures is insufficient to reshape the industry landscape. If the U.S. ultimately takes action, its politicization of economic and trade issues may not only disrupt market mechanisms and raise costs for all parties but could also backfire on its own high-tech industry and have a ripple effect on multiple fields, including artificial intelligence, and other countries.

Chinese Foreign Ministry spokesperson Lin Jian stated at a regular press conference on the 24th that China firmly opposes the U.S. government's excessive imposition of tariffs and unreasonable suppression of Chinese industries. "We urge the U.S. side to correct its erroneous practices as soon as possible, guided by the important consensus reached by the leaders of both countries, to resolve respective concerns through dialogue on the basis of equality, respect, and mutual benefit, properly manage differences, and maintain stable, healthy, and sustainable development of U.S.-China relations. If the U.S. insists on its course, China will resolutely take corresponding measures to safeguard its legitimate rights and interests," Lin Jian said.

The New York Times cited an analysis by former U.S. trade official Sarah Schumann, stating that China is "very sensitive" to actions taken by the U.S. against it or its companies. The report believes that the U.S. government's postponement of new tariffs is part of a series of actions to maintain the situation after reaching a trade "truce" agreement with China. Reuters mentioned that the U.S. side has also delayed a regulation restricting the export of U.S. technology to subsidiaries of blacklisted Chinese companiesIn addition, the United States launched a review last week of Nvidia's sale of advanced artificial intelligence chips to China, despite strong dissatisfaction from hawkish U.S. politicians regarding China.

"The latest move retains the U.S. government's ability to impose tariffs while seeking to ease tensions with Beijing," Reuters analyzed.

Zhou Mi believes that the U.S. government has recently sent relatively restrained signals, mainly to avoid further escalating Sino-U.S. economic and trade frictions in the current international and domestic environment. After achieving results in Sino-U.S. economic and trade consultations, the U.S. side also intends to maintain a relatively stable economic and trade atmosphere to prevent related policy measures from interfering with potential high-level interactions and communication arrangements.

Currently, the U.S. government is also conducting an investigation under Section 232 of the U.S. Trade Expansion Act, covering products such as semiconductors, which is seen as a precursor to imposing tariffs. The New York Times reported that these tariffs were initially expected to be announced this summer, but U.S. government officials have been weighing how to impose these tariffs in a way that encourages the development of U.S. manufacturing without damaging relations with China.

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