China's industry watchdog voices opposition to bullying 337 investigation against Apple supplier

China's industry watchdog on Tuesday voiced resolute support for intellectual property protection while opposing the abuse of power and the bullying targeting normal business competition, in response to a U.S. section 337 investigation against China's Luxshare Precision Industry on IP infringement grounds.

Speaking at a press conference, Huang Libin, spokesperson of the Ministry of Industry and Information Technology (MIIT) and director general of MIIT's Performance Inspection and Coordination Bureau, said the ministry takes seriously the 337 investigation based on a U.S. company complaint filed to the U.S. International Trade Commission that accuses Luxshare Precision and other affected Chinese businesses of patent infringement in regards to specific electrical connectors and cages, components and downstream products. 

The development of China's electronic and information sector is reliant on the rise of domestic firms as well as effective international cooperation, Huang said, expressing support for high-quality development of electronic component and precision processing companies.

Arguing against the bullying acts cracking down on normal business competition, the MIIT spokesman pledged to work with other government departments to help affected businesses in strengthening their response to the investigation and safeguard their legitimate rights and interests.

In a filing with the Shenzhen Stock Exchange on Sunday night, Luxshare Precision said it had hired a team of U.S. lawyers to respond to the investigation and would follow the 337-investigation process and stressed that the case will not have a substantial impact on current production and operations.

Shares of the Apple supplier fell 2.64 percent during the morning session of Tuesday, following a loss of 3.97 percent on Monday.

The MIIT spokesman also addressed concerns over chip shortage, saying that major global integrated circuit (IC) production lines are all facing tight capacity as a result of continued robust demand for IC, a most important component of smart equipment, especially as the COVID-19 epidemic fuels online communication and thus boosting demands for chips for data center servers and smart gadgets.

The industry watchdog will support companies from both home and abroad in ramping up investment for there to be a continued improvement in IC supply capacities.