China cuts taxes to spur semiconductor development

BEIJING (AP) — China has announced tax breaks to spur growth of its semiconductor industry following U.S. sanctions that cut off access to American processor chips for tech giant Huawei and some other companies. Communist leaders declared accelerating efforts to transform China into a self-reliant “technology power” this year’s top economic priority after the tariff war with Washington highlighted its reliance on U.S. components for smartphones and other tech industries Beijing wants to develop. The Finance Ministry and other agencies say chipmakers can import machinery and raw materials tax-free through 2030. Beijing has invested heavily in its chip industry, but its makers of smartphones and other technology rely on the U.S., Europe and Taiwan for their most advanced components.