The Ministry of Commerce responded that the United States provided huge subsidies and tax incentives to the local chip industry.

He Yadong, spokesperson of the Ministry of Commerce, said on March 21 that the semiconductor industry is highly global. After decades of development, it has formed an industrial pattern in which you have me and you have me. This is the result of the combined effects of resource endowments and market rules. For some time, the United States has generalized the concept of national security, abused measures such as export controls, and artificially separated the global semiconductor industry chain. The United States provides huge subsidies and tax incentives to the local chip industry. Some provisions force companies to abandon China and join the United States. They are obviously discriminatory, seriously violate market rules and international economic and trade rules, and will distort the global semiconductor industry chain.

At the regular press conference of the Ministry of Commerce held on the same day, a reporter asked that the Biden administration is preparing to provide billions of dollars in subsidies and loans to chip companies Intel, Samsung and TSMC to help them expand production in the United States. Are you worried that China's semiconductor production capacity will be replaced? He Yadong made the above response and said that China is committed to expanding high-level opening up to the outside world and welcomes semiconductor companies from all over the world to invest and cooperate in China to jointly contribute to the stable and healthy development of the global semiconductor industry chain.

In response to the U.S. Department of Commerce being considering adding several Chinese chip companies related to Huawei to the sanctions list, He Yadong responded at the press conference that China has always opposed politicizing and weaponizing economic, trade and scientific and technological issues. In recent years, the United States has abused export control measures and imposed unreasonable sanctions on Chinese companies, seriously disrupting global industrial and supply chains, and harming others and itself. If the United States uses national power to impose sanctions on more Chinese companies on the grounds of so-called connections while continuing to suppress Huawei, this will be a typical economic bullying practice, violating international economic and trade rules, damaging the international economic and trade order, and becoming an international economic and trade community. Scorn it. China urges the United States not to take wrong measures and will take necessary measures as appropriate to safeguard the legitimate rights and interests of Chinese enterprises.