The China Council for the Promotion of International Trade (CCPIT) and China Chamber of International Commerce on Wednesday slammed the new CHIPS and Science Act signed by US President Joe Biden, saying that the act will improperly interfere with and restrict global economic, trade and investment cooperation.

(File photo: GT)

The act aims to enhance US advantages in the field of computer chips, and targets unfair competition in this field from "any country of its concern," including China, said a joint announcement released on the CCPIT website on Wednesday, an act which will hinder the global economic recovery and innovative growth.

"We advocate and actively promote healthy, fair and just international competition, and oppose the United States using state power to obstruct the normal exchanges and cooperation of the global industry and commerce community," said the announcement, adding that the act creates "unfair competition on the basis of discriminating against other countries."

The act provides huge subsidies for the domestic chip industry in the US and investment tax credits for semiconductor and equipment manufacturing, to encourage companies to build factories in the US.

According the joint announcement, the act discriminates against foreign companies, highlighting the US practice of using state 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 announcement called the act a typical industry-specific subsidy that is not in line with the WTO's non-discrimination principle. In addition, the act lists some countries as key targets, leading companies to adjust their global development strategies. In particular, the act broadly defines "any state of concern," extending indefinitely the discretionary powers of law enforcement.

In addition, the act sets out a series of measures to ensure that technologies developed under the "Made in America" program are produced in the United States. "These regulations not only restrict the fair participation of enterprises in some countries in global competition, but also have a negative impact on global economic recovery and innovation growth," said the announcement.

"In short, the effective implementation of the act will affect the optimal configuration, security and stability of global chip manufacturing and supply chains, and seriously disrupt the normal economic, trade and investment activities of companies in various countries that follow basic market laws. The general desire runs counter to this," the announcement said.

The announcement called on the global business community to work together to eliminate the adverse impacts of the act on the industry and business community, and to take effective measures to safeguard their legitimate rights and interests when necessary.

(Compiled by Lin Rui)