The Office of the US Trade Representative (USTR) has begun an investigation into China’s semiconductor industry, looking for anti-competitive trade practices. the USTR is looking to China for “practices, policies and practices” that reduce or eliminate competition in the market for semiconductors.

The investigation was conducted by of the US Trade Act of 1974 to investigate trade practices for “foundational” semiconductors used in the automotive, healthcare, infrastructure, aerospace and defense industries. The White House accused China on Monday of “regularly” engaging in “non-market policies and practices, as well as industrial targeting, in the semiconductor industry” that have caused significant harm to its competition and created and “risky supply chain dependencies,” according to the statement.

If action is taken as a result of the investigation, Section 301 allows the USTR to “impose duties or other import restrictions,” “withdraw or suspend trade agreement concessions” or enter into a agreement with China to “eliminate the conduct in question … or pay the US satisfactory trade benefits,” according to the US Trade Act. Decisions, however, will be left to the administration of President Trump and future USTR Jamieson Greer.

A spokesman for China’s Ministry of Commerce said in a statement that China “strongly regrets and strongly opposes” the US investigation. The country will also “take all necessary measures to resolutely protect its rights and interests,” according to .

Tensions are high between the US and China. Launched by President Biden to China and other unnamed countries due to potential vulnerabilities and threats from connected vehicles. Then in May, the White House announced of $18 billion worth of Chinese imports including semiconductors.