US and EU Urge Restraint in Semiconductor Subsidy Competition

[Asia Economy New York=Special Correspondent Joselgina] The United States and the European Union (EU) have agreed to refrain from subsidy competition to foster the semiconductor industry. They will also jointly respond to false information spread by Russia regarding the Ukraine war.

According to AFP and other sources, on the 16th (local time), the US and the EU announced a statement with these contents at the 2nd US-EU Trade and Technology Council (TTC), held since the previous day in Saclay, on the outskirts of Paris, France.

Both sides agreed to continue support for the growth of the semiconductor industry but to refrain from subsidy competition. Additionally, they will introduce an early warning system to predict semiconductor supply disruptions.

The US and the EU agreed to exercise maximum caution to avoid unnecessary trade barriers. The statement also included concerns about the rare earth supply chain concentrated in China and plans to enhance procurement capabilities.

Along with this, both sides condemned Russia, which invaded Ukraine, for spreading false information and stated that they may provide funding to ensure access to fact-based and reliable information.