China strongly disagreed and opposed the US' Section 301 investigation into its semiconductor industry policies, according to a statement from the Chinese Ministry of Commerce on Monday, as reported by Xinhua.

The ministry said that this inquiry would cause distortions and disruptions in the worldwide semiconductor supply chains and industry, which would be detrimental to US companies and consumers, according to Xinhua. The United States has supported its domestic chip industry with significant subsidies through laws like the CHIPS and Science Act. Additionally, according to Xinhua, the U.S. semiconductor companies hold about 50% of the global market share.

According to a recent US Department of Commerce study, on the other hand, Chinese-made chips only make up 1.3% of the US market, and the amount of Chinese chips exported to the US is significantly lower than the amount of chips imported from the US, according to Xinhua.

According to Xinhua, the ministry called on the US to acknowledge the facts and follow international rules, insisting that it stop its wrong actions immediately. It also stated that China would carefully track the investigation's progress and take all necessary steps to protect its rights and interests.