China cuts tax rates for chipmakers amid trade tensions with United States

US President Donald Trump's administration is requesting China purchase more semiconductors from the United States

China's finance ministry said on Friday it has introduced tax breaks for chipmakers made in the country, at a time when the government is seeking to reduce dependence on foreign semiconductors amid trade tensions with the United States over technology transfers.
 
The move comes as the United States is considering imposing tariffs on $50 billion worth of Chinese exports, citing discriminatory trade practices in high-tech sectors, including semiconductors.
 
Chipmakers will be exempt from corporate taxes for two to five years followed by partial deductions, the ministry said in a notice posted on its website.
 
The exemptions cover