China criticizes US chip law as threat to trade

China on Wednesday criticized a U.S. law to encourage processor chip production in the United States and reduce reliance on Asian suppliers as a threat to trade and an attack on Chinese business.

The law signed this week by President Joe Biden promises $52 billion in grants and other aid to investors in U.S. chip factories. It responds in part to warnings that supplies might be disrupted if China attacks Taiwan, which produces up to 90% of high-end chips. China's ruling Communist Party claims the self-ruled island as part of its territory.