China cuts taxes to spur semiconductor development

03/29/2021

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AP

BEIJING (AP) — China announced tax breaks Monday to spur growth of its semiconductor industry following U.S. sanctions that alarmed the ruling Communist Party by cutting off access to American processor chips for tech giant Huawei and some other companies.

Leaders declared accelerating efforts to transform China into a self-reliant “technology power” to be this year’s top economic priority after the tariff war with Washington highlighted its reliance on U.S. components for smartphones and other industries Beijing wants to develop.

Chipmakers can import machinery and raw materials tax-free through 2030, the Finance Ministry and other agencies announced. They did not say how large a subsidy to manufacturers that might represent.

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