Intel Corp (INTC)

[SemiconEng]

America's Chip Crusade

http://www.fool.com/News/mft/2004/mft04031919.htm?source=eptyholnk303100&logvisit=y&npu=y
The U.S. government has finally had enough. Yesterday, the Office of the U.S. Trade Representative filed a complaint with the World Trade Organization (WTO) over China's policy of adding a 17% value-added tax (VAT) to chips that are made here but sold in China. Local Chinese makers pay no more than 6% in VAT fees..........

To be sure, the U.S.-China brouhaha over chips is only in round one, but recent history suggests China may lose the bout. (Similar tariffs imposed by the Bush administration over steel were ruled illegal by the WTO in December.) Investors should hope so. There's little chance of American chip makers abandoning China wholesale; the market is just too large. But if the cover charge for playing in the Sino sandbox remains this high, growth and long-term profits could suffer.........

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