South Korean lawmakers proposed a new subsidy package on Nov. 11, aimed at protecting domestic chipmakers in anticipation of global industry shockwaves that are expected if U.S. President-elect Donald Trump enacts the 60 percent or higher tariffs on Chinese-made chips and other goods that he previewed on the campaign trail.
South Korean President Yoon Suk Yeol warned last week that the Chinese industry could respond to increased U.S. tariffs by slashing prices to the point of undercutting South Korean chipmakers and urged lawmakers to tackle the issue. China under the Chinese Communist Party (CCP) does not have a market economy, and industries often act in the direction of CCP goals rather than market forces.
