China’s ministry launches probe into US chip subsidies, alleged dumping

China will investigate allegations that the US dumps lower-end chips and unfairly subsidizes its own chipmakers, in potentially one of Beijing’s strongest retaliatory moves against American technology sanctions.

The government will look into the question of whether the US is giving its chipmakers an unfair advantage through incentives and grants, or illegally undercutting Chinese products, the Commerce Ministry said in a statement Thursday. The probe was begun in response to protests from local industry players, the agency said.