The Obama administration released a report issuing a warning about the impact of Chinese industrial policy on the US chip market. The report, released on Friday, called for more thorough scrutiny of Chinese policies, which may put the US national security at risk.

The report, released by the President's Council of Advisors on Science and Technology, stated, "We found that Chinese policies are distorting markets in ways that undermine innovation, subtract from U.S. market share, and put U.S. national security at risk."

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It further said that China has not shown corresponding commitment to global openness, despite benefiting from it. China, on the other hand, is also preparing its strategy to counter the anti-China rhetoric of President-elect Donald Trump.

Bloomberg reported that China may impose tax or antitrust claims on bigger US companies. It may also resort to carrying out anti-dumping probes on US firms.

China is also looking to gain a foothold in the international semiconductor sector, where it has allocatted $150 billion to be spent over the next 10 years. The latest report said that the US needs to come up with an effective response to maintain its position in the industry.

The US has also exercised its international clout to check China's growth in global technological sector. It is believed to have hindered acquisition of German firm Aixtron by a Chinese business. It also nuked the sale of Philips' US lighting business to Go Scale Capital, which consisted of several Chinese businesses such as Nanchang Industrial Group and Asia Pacific Resource Development.

Tagschina, USA, donald trump