China’s push to develop its domestic semiconductor technology threatens to harm US chipmakers and put America’s national security at risk, the Obama administration warned in a report that called for greater scrutiny of Chinese industrial policy. China’s goal to achieve a leadership position in semiconductor design and manufacturing, in part by spending $150 billion over a 10-year period, requires an effective response to maintain US competitiveness in the industry, according to the report released Friday. “We found that Chinese policies are distorting markets in ways that undermine innovation, subtract from US market share, and put U.S. national security at risk,” the President’s Council of Advisors on Science and Technology said in the report. According to Bloomberg, the warnings could give ammunition to President-elect Donald Trump, whose rhetoric has sparked fears of a trade war.
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