China slams US CHIPS Act claiming \`economic coercion

China on Wednesday launched a broadside against the US CHIPS Act and called it a  disruption and  another example of economic coercion.

Wang Wenbin_ the spokesperson for China's Foreign Ministry_ said the US CHIPS Act will disrupt normal scientific and technological cooperation between the two countries.

"It has strong geopolitical overtones and is another example of economic coercion by the US_" Wang told.
 
US President Joe Biden on Tuesday signed a bill called the Chips and Science Act (CHIPS Act) that aims to invest more than $52bn in the semiconductor industry in an effort to compete with its biggest rival China.

The US president said the act will strengthen national security by making the country less dependent on foreign sources of semiconductors.

Chinese trade associations also raised concerns over the US move_ saying the bill will lead to  unfair competition in the chip industry.

In a joint statement_ the China Council for the Promotion of International Trade (CCPIT) and the China Chamber of International Commerce (CCOIC) said: "The US is using government power to forcibly change the international division of labor in the semiconductor field and harm the interests of companies from all over the world_ including Chinese and American companies_" the two Chinese trade associations said.

"On the one hand_ it is a typical industry-specific subsidy_ which does not conform to the non-discrimination principle of the World Trade Organization.

 On the other hand_ the bill identifies particular countries as key targets_ which leads companies to be forced to adjust their global development strategies and layouts_" they said.

The two also called on the global business community to work together to eliminate the adverse impact of the act on the business community and take effective measures to safeguard their legitimate rights and interests when necessary.

According to the White House_ the US produces nearly 10 per cent of the world's semiconductor supply but it depends heavily on East Asia for 75 per cent of global production.