China is proposing to the US to purchase $200 billion worth of semiconductor products over a six-year period. The country hopes to take the cold from the trade war out of the air with the purchase of chips.
The proposal represents a fivefold increase in current US semiconductor exports to China. However, it is part of China’s plans for the US to move assembly lines of US chip production companies from other low-wage countries such as Mexico and Malaysia to China.
The proposals were made this week during negotiations between China and the US, Market Watch writes based on an article in the WSJ. The United States has been complaining for years that China is stealing technology from US companies and favoring its own tech sector over US companies in many ways.
Under President Trump, pressure on China to change its practices has increased. China now hopes with its proposals to prevent further escalation of the trade war between the companies. In addition to a growth in chip exports, the plans are about Chinese promises to buy more agricultural and energy products from the US.