China’s move is seen as retaliation for trade restrictions imposed by the US last year.
Commerce Secretary Gina Raimondo is outraged by China’s move to ban imports of Micron memory chips from the United States. In a conversation with reporters this weekend said Raimondo said the United States “will not tolerate” China’s ban, which it labeled “economic coercion.”
His comments were a strong response to China’s cyberspace regulator ruling this month that the largest US manufacturer of memory chips poses “serious risks to network security”.
The decision means Micron’s products will be banned from major infrastructure projects in China, the world’s second-largest economy.
An escalating trade war
After a meeting of trade ministers at the US-led Indo-Pacific Economic Framework (IPEF) talks. Raimondo said the U.S. “strongly opposes” China’s actions against Micron. “As we said at the G7 and as we have continued to say, we are working closely with partners to address this particular challenge and all challenges related to China’s non-market practices,” he said.
Raimondo’s comments echo earlier statements by Senate Majority Leader Chuck Schumer, who pledged direct presidential action on the Micron ban. “I have been working closely with the Biden administration to make clear to the Chinese government that this type of behavior is unacceptable and ineffective.” declared Schumer last week.
US engages allies
America’s strategy now focuses on enlisting its allies in the region to help it further counter China. Raimondo explained in this regard IPEF Agreement Supply chains coincide with US investment in a $52 billion chips bill to boost semiconductor production in the US.
“As we said at the G7 and as we have continued to say, we are working closely with partners to address this particular challenge and all the challenges associated with China’s non-market practices.”
“The CHIPS Act investments are aimed at strengthening our domestic semiconductor manufacturing. That is, we welcome the participation of companies from IPEF countries, so we expect companies from countries like Japan, Korea, Singapore to participate in the CHIPS Act Funding,” said Raimondo.
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