China says U.S. chip act will distort global semiconductor supply chain

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FILE PHOTO: Illustration picture of semiconductor chips on a circuit board

HONG KONG – China’s commerce ministry said on Friday that a major new chips act passed by the U.S. Congress will distort the global semiconductor supply chain and disrupt international trade.

The U.S. House of Representatives passed the sweeping legislation on Thursday to subsidise the domestic semiconductor industry as it competes with Chinese and other foreign manufacturers.

China will continue to monitor the progress and implementation of the U.S. act and take meaures to safeguard its legitimate rights when necessary, the ministry said in a statement.

(Reporting by Meg Shen and Twinnie Siu; editing by Jason Neely)