House Select Committee Leaders Ask for Higher Tariffs on Chinese Legacy Chips

 The chairman and ranking member of the House Select Committee on China asked the commerce secretary and the U.S. trade representative to use "all existing trade authorities" to hike tariffs on Chinese legacy chips, including those already incorporated into consumer goods, they said in an emailed news release.

In a letter sent Jan. 8, Rep. Mike Gallagher, R-Wis., and Rep. Raja Krishnamoorthi, D-Ill., asked if there is legal authority to levy "'component tariffs' that impose import duties on the foundational chip itself, rather than the finished product? If not, what additional authorities are needed?"

They asked if the U.S. could convince key trading partners to erect similar barriers.

They said it's estimated that China will produce half the world's chips between 50 and 180 nanometers in less than 10 years.

"Just as Russia had to scour the world for chips to keep its weapons production alive after Western sanctions, the United States and the global economy may be forced to do the same if the [People's Republic of China] decides to restrict access to PRC foundational chip production," they argued.

"While the Administration has taken strong actions to ensure U.S. advanced semiconductor technology is not transferred to the PRC, far less attention has been given to the risk that a surge of PRC-made foundational chips poses to U.S. economic security. Secretary [Gina] Raimondo recently acknowledged this risk, stating 'we have seen potential signs of concerning practices from the PRC to expand their firms’ legacy chip production and make it harder for U.S. companies to compete,'" they wrote.

They asked for a response within 60 days.