Donald Trump’s incoming trade team is backing a call from the Obama administration to take a hard line on China over semiconductors, after outgoing officials likened the potential impact of Beijing’s investment in the sector to the devastation seen in the global steel industry.

At a confirmation hearing this week, Wilbur Ross, who is poised to become Mr Trump’s commerce secretary and will take a lead role on trade policy, said: “The Chinese are the world’s largest consumer of semiconductors, so far mainly importing?.?.?.?from [the US].” But he was “very, very concerned” about China’s growing semiconductor sector.

Mr Ross said he had discussed the issue with Obama administration officials, who had raised concerns about China’s state-backed semiconductor sector and its potential strategic threat to the US.