Biden: "Companies Receiving US Tax Support Will Be Prevented from Investing in China"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] President Joe Biden emphasized that companies receiving U.S. tax support in key industries such as semiconductors will be prevented from investing in China.

According to the White House, on the 9th (local time), President Biden attended the groundbreaking ceremony for Intel's new semiconductor plant in Ohio and stated, "I have earnestly urged the administration to focus on establishing safeguards to protect tax funds," adding, "We will make it clear that companies receiving tax support will not invest in China, which undermines the supply chain."

Since taking office, Biden has prioritized countering China as the top diplomatic and security policy agenda, saying, "This is a matter of security," and reiterated, "We have the power. If companies fail to meet these conditions, federal funds will be reclaimed." By mentioning the recovery of subsidies, he raised the pressure level beyond previous statements, indicating that further measures are expected.

The possibility of affecting the domestic industry and the overall market cannot be ruled out. Samsung Electronics and others are already making large-scale investments in the U.S., and the semiconductor industry's upstream and downstream effects are extensive. The Semiconductor Support Act (Chips and Science Act·CSA), signed by the president last month, includes a guardrail provision that prohibits companies receiving U.S. subsidies and support from building advanced semiconductor plants in China.

Especially ahead of the midterm elections in November, President Biden has emphasized the revival of U.S. manufacturing and attracting investment, stating, "'Make it in America' is no longer just a slogan. It is a reality under my administration, and I will keep my promise to rebuild the economy from the ground up."

He also said on this day, "We must produce semiconductors right here in the U.S. to reduce costs and create quality jobs," emphasizing, "Countries around the world, including Korea, China, Japan, and the European Union, are pouring hundreds of billions of dollars to attract semiconductor facilities to their own countries." He added, "Industry leaders are choosing the U.S. as their investment destination because America is back and leading the industry."

In this speech, President Biden also cited examples of Korean companies' investments as evidence of the excellent investment environment in the U.S. He said, "I met with leading industry figures from Korea and asked why they invest large sums in the U.S.," and "He replied that the U.S. is the safest country in the world and has the best workforce." Earlier, during his visit to Korea in May, President Biden met with Samsung Electronics Vice Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Eui-sun.

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