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Biden Administration Launches Section 301 Trade Probe into Chinese Legacy Chips Ahead of Trump Transition in January 2025

Dec 23, 2024, 10:48 AM

The Biden administration has launched a trade investigation targeting Chinese-made legacy semiconductors, which could lead to new tariffs. This probe, initiated under Section 301 of the Trade Act of 1974, will focus on mature-technology chips essential for various industries, including automotive, appliances, and medical devices. The U.S. Trade Representative's office stated that the investigation is based on evidence suggesting that China employs anti-competitive and non-market policies to dominate global chip production. The probe will also examine components and end-use products containing these legacy chips. The findings and recommendations from this investigation will be handed over to the incoming Trump administration in January 2025, allowing the former president to decide on potential tariffs. The Biden administration's actions are seen as a response to concerns over China's rapid expansion in the semiconductor sector, which U.S. officials argue threatens national security and market fairness.