HONG KONG: China’s commerce ministry said on Friday that a major new chips act passed by the US Congress will distort the global semiconductor supply chain and disrupt international trade.

The US House of Representatives passed the sweeping legislation on Thursday to subsidise the domestic semiconductor industry as it competes with Chinese and other foreign manufacturers.

US Senate passes bill to boost domestic chip manufacturing

China will continue to monitor the progress and implementation of the US act and take meaures to safeguard its legitimate rights when necessary, the ministry said in a statement.