US Launches Trade Investigations into Chinese Drones and Key Chip Material
📷 Image source: s.yimg.com
The United States has initiated two new trade investigations targeting Chinese imports, focusing on drones and a critical raw material used in semiconductor and solar panel manufacturing. The move signals an escalation in Washington's efforts to curb reliance on Chinese technology and materials deemed vital for national security and economic competitiveness.
The first probe examines whether Chinese-made drones, particularly those from industry leader DJI, benefit from unfair subsidies that undermine American competitors. The second investigation centers on silicon carbide, a heat-resistant compound essential for producing advanced chips and renewable energy components. The US International Trade Commission (USITC) will assess whether these imports harm domestic industries.
Commerce Secretary Gina Raimondo emphasized the importance of securing supply chains for 'technologies of the future,' noting that silicon carbide is crucial for electric vehicles, defense systems, and clean energy infrastructure. The investigations could lead to new tariffs or import restrictions if unfair trade practices are confirmed.
Industry analysts suggest the actions reflect growing concerns over China's dominance in both consumer drones (where DJI controls over 70% of the global market) and critical materials production. The silicon carbide investigation follows similar measures on other tech-related imports, including rare earth minerals and lithium-ion batteries.
The probes come amid heightened trade tensions between Washington and Beijing, with the Biden administration maintaining many Trump-era tariffs while focusing on strategic sectors. Chinese officials have previously criticized such investigations as protectionist measures that disrupt global supply chains.
