Governor Seeks Reagan Aid in ‘Chip Wars’ With Japan
Claiming that California high-technology companies are being hurt by unfair trade practices, Gov. George Deukmejian Monday called on President Reagan to make so-called “dumping” of Japanese electronics products in the United States a top priority of the upcoming economic summit in Tokyo.
Deukmejian, using meetings with business and electronics industry leaders here as a forum, released a letter to Reagan complaining that Japan is denying California companies access to its own consumer markets at the same time it sells computer chips here at below-market prices, a practice known as dumping.
Referring to the forthcoming summit, the governor in his letter asked the President “to place a high priority on seeking an opening of the Japanese semiconductor market as well as an end to unfair dumping practices.”
During a break in a meeting of the World Trade Commission here, Deukmejian said “a serious problem exists” for California companies.
“We are supporting our high-technology industry in its request that the matter be discussed by the President and his representatives in their negotiations with the Japanese,” the governor said.
During the meeting of the commission on which Deukmejian sits with 14 other members, including Lt. Gov. Leo T. McCarthy and Secretary of State March Fong Eu, state officials heard several grievances from electronics industry representatives.
Silicon Valley executives complained that in addition to what they described as “predatory” pricing practices, American firms are being hurt at home by the lack of a coordinated U.S. trade policy.
McCarthy, after listening to two hours of testimony, said, “This state is getting killed by a lack of federal trade policies.”
In his letter, Deukmejian cited Semiconductor Industry Assn. statistics showing that U.S. firms held from 46% to 83% of the computer chip market in nations other than Japan, but only a 10% to 12% share in that island nation.
Deukmejian said American firms do not want protectionist measures, “only the right to compete freely and fairly in an open international marketplace.”
