Massive government investment in China's semiconductor industry risks distorting the global market for integrated circuits, leading to damaging overcapacity and stifling innovation, U.S. Commerce Secretary Penny Pritzker has warned.
The comments come at a time of growing trade tension between the Asian giant and the United States over accusations of dumping, industrial overcapacity and a souring business climate for foreign firms doing business in China.
Republican presidential candidate Donald Trump has threatened to levy punitive tariffs of 45 percent on imports of Chinese goods if he is elected.
In a speech on Wednesday, Pritzker sharply criticized a $150-billion plan by the Chinese government to expand the share of Chinese-made integrated circuits in the domestic market to 70 percent by 2025, from 9 percent now.
