USTR investigates China's semiconductor policies, citing unfair practices and market distortions. Potential trade actions ahead.
Introduction
![Robotic arms assemble a chip in a futuristic factory. American and Chinese flags in the background, glowing blue lights dominate.](https://static.wixstatic.com/media/6e1957_a1d66d2ebe33416a881e405a3e9728fd~mv2.png/v1/fill/w_980,h_980,al_c,q_90,usm_0.66_1.00_0.01,enc_auto/6e1957_a1d66d2ebe33416a881e405a3e9728fd~mv2.png)
On December 23, 2024, outgoing U.S. Trade Representative Katherine Tai announced an investigation into China's policies and practices related to its efforts to dominate the semiconductor industry. This probe, conducted under Section 301 of the Trade Act of 1974, aims to assess whether China's market interventions unfairly disadvantage U.S. commerce and undermine global competition.
In this blog, we will answer the following questions:
What is Section 301, and why is it important?
What are the key concerns about China’s semiconductor policies?
How does this impact the U.S. semiconductor industry?