ANKARA 

China and the US on Thursday agreed to form a joint working group to tackle a deepening shortage of semi-conductor chips.

In a statement, the China Semiconductor Industry Association (CSIA) said it held several rounds of discussions and consultations with the American Semiconductor Industry Association and that they would jointly establish a "Sino-US Semiconductor Industry Technology and Trade Restriction Working Group."

Ten member companies in the semiconductor industry from both sides will take part in the group "to share relevant information and conduct dialogues."

The Chinese side said it would establish a "timely communication and information sharing mechanism for the Chinese and American semiconductor industries to exchange relevant policies on export control, supply chain security, encryption and other technologies and trade restrictions."

This followed the US confirming on Wednesday that Secretary of State Antony Blinken would meet his Chinese counterpart Wang Yi next week in Alaska.

Beijing also confirmed the first high-level political engagement with the Joe Biden administration, saying Washington had extended the invitation.

"The two associations hope to strengthen communication and exchanges through the working group to promote deeper mutual understanding and trust," said the CSIA.

"The working group will follow fair competition, intellectual property protection and global trade rules, resolve the concerns of the Chinese and American semiconductor industries through dialogue and cooperation, and make joint efforts to establish a robust and resilient global semiconductor value chain."

Bilateral engagement between China and the US declined under former President Donald Trump, with the two sides imposing tit-for-tat tariff hikes, along with a near total cut in dialogue and engagements.

Many Chinese firms were put on notice by the former administration and stopped from operating in the US.

Under the new framework, the working group is expected to meet twice a year to "share the latest developments in technology and trade restriction policies between the two countries."

They will also determine content in the chip industry that needs further research.

It added that the first such meeting would be held online due to the pandemic.