Launch of US-EU Trade and Technology Council Targeting China: "Joint Response to Semiconductor Supply Chains and Unfair Practices" (Comprehensive)

"Securing Technological Leadership... Advancement of Semiconductor Manufacturing Ecosystem"
Joint Response Pledged Against Unfair Trade Practices... Intention to Check China

On the 29th (local time), participants at the US-EU Trade and Technology Council (TTC) meeting held in Pittsburgh, USA, are listening to the speaker's remarks.
[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] The United States and the European Union (EU) have agreed to strengthen cooperation on semiconductor supply chains and secure leadership in the era of new technology competition. This has led to analyses that the Western world's 'new technology alliance' targeting China has officially begun.

On the 29th (local time), immediately after the first meeting of the US-EU Trade and Technology Council (TTC) held in Pittsburgh, the two sides issued a joint statement saying, "Through cooperation between the two sides, we will strengthen technological leadership and competitiveness," and "We will enhance mutual cooperation on major economic and technological issues and strive to achieve tangible results before the next meeting."

The TTC is a body agreed upon during US President Joe Biden's visit to Europe last June to strengthen supply chains for key components such as semiconductors and to prepare in advance for trade disputes.

On this day, both sides agreed to strengthen related cooperation to resolve the global semiconductor supply shortage and secure semiconductor technology leadership as a core national industry.

They stated, "We will enhance mutual communication to identify common vulnerabilities related to semiconductor supply chains and develop regional technology research and development and manufacturing ecosystems."

Regarding semiconductor supply chain cooperation, the two sides agreed to initially address short-term supply chain issues.

The statement said, "The dedicated semiconductor issue track will initially focus on short-term supply chain issues," and "Cooperation on medium- to long-term strategies for semiconductor issues will begin in a working group prior to the next TTC meeting."

They also agreed that each government will actively support strengthening domestic semiconductor production capabilities. According to the Semiconductor Industry Association (SIA), last year, semiconductor production within the US and EU accounted for 21% of global production.

This agreement came amid the Biden administration's recent designation of semiconductor technology as a national core industry and its acceleration of related technology development.

From the right, Tony Blinken, U.S. Secretary of State; Gina Raimondo, U.S. Secretary of Commerce; and Katherine Tai, U.S. Trade Representative (USTR) [Image source=AP Yonhap News]

The Wall Street Journal (WSJ) reported, "The US government has recently been concerned about the semiconductor supply shortage and its adverse effects on US manufacturing overall," adding, "Biden administration officials last week requested information sharing on semiconductor supply chain issues from the automotive industry, technology companies, and semiconductor firms."

In the statement, both sides said, "We will continue to cooperate to protect our companies, consumers, and workers from unfair trade practices, especially those posed by non-market economies that undermine the global trading system."

Although China was never mentioned in the statement, the two sides' policy to respond to unfair market policies such as illegal government subsidies is widely seen as an effort to check China. This follows the US holding the first in-person summit of the 'Quad' in the Indo-Pacific region on the 24th, where cooperation centered on technology was strengthened, expanding the encirclement of China to Europe as well.

Furthermore, the US and EU's announcement to strengthen monitoring and supervision of investments in new technology industries is also interpreted as targeting China. The two sides stated, "We will mutually share information on types of investments and investors and analyze various risks centered on sensitive technologies and data."

Earlier this year, a Chinese company announced the acquisition of ARM Holdings, the world's largest semiconductor design company for mobile devices based in the UK, and with the ongoing aggressive investments by Chinese capital, the Western world has been concerned about the leakage of related technologies.

From the right, Valdis Dombrovskis, European Union (EU) Commissioner for Trade, and Margrethe Vestager, EU Commissioner for Competition
[Image source=AP Yonhap News]

In addition, the US and EU agreed to jointly research and review the development and implementation of artificial intelligence (AI) that enhances privacy protection, and to cooperate in 10 areas including eco-friendly technologies for climate change response, data governance, technology platforms, prevention of technology misuse for human rights protection, technology standardization efforts, and information technology (IT) security.

At the meeting, the US side was represented by Secretary of State Antony Blinken, Secretary of Commerce Gina Raimondo, and US Trade Representative Katherine Tai, while the EU side included Valdis Dombrovskis, Executive Vice President for Trade, and Margrethe Vestager, Executive Vice President for Competition, among others.

This content was produced with the assistance of AI translation services.