China’s finance ministry introduced new tax breaks for chipmakers amid trade tensions

Vastavam web: China’s finance ministry said on Friday it has introduced new tax breaks and exemptions for firms making semiconductors, seeking to limit dependence on foreign chips amid trade tensions with the United States over technology transfers.The move comes as the United States is considering imposing tariffs on $50 billion worth of Chinese exports, citing discriminatory trade practices in high-tech sectors, including semiconductors.

Chipmakers will be exempt from corporate taxes for two to five years followed by partial deductions, the ministry said in a notice posted on its website on Friday.China’s ambitions have riled overseas regulators however, who have blocked several acquisition attempts by Chinese firms looking to speed up development through technology transfers.

U.S. President Donald Trump’s administration is requesting China purchase more semiconductors from the United States as part of a plan to avoid proposed tariffs and a potential trade war, Reuters reported on Tuesday.