WASHINGTON — As U.S. officials press China to buy more than $1 trillion in American exports as part a trade deal, computer-chip makers are saying: Count us out.
U.S. semiconductor firms say they have told the Trump administration not to include them in any deal that calls for Beijing to step up purchases of American goods and services. Because U.S. production costs are so high, mandatory-purchase quotas would essentially force U.S. chip makers to open new factories in China, these companies say, potentially giving China more control over their production.
That, the companies say, would benefit their Chinese competitors and make the U.S. firms more dependent on Beijing.
“Whatever the number, the Chinese chip purchase offer is a distraction that risks deepening Chinese state influence in an environment that is otherwise market-based,” said John Neuffer, president of the Semiconductor Industry Association. “The market should determine commercial success, not government fiat.”
An expanded version of this report appears on WSJ.com.
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