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U.S. Initiates Section 301 Trade Probe into Chinese Legacy Semiconductors as Trump Transition Nears

Dec 23, 2024, 04:30 PM

President Joe Biden's administration has initiated a Section 301 trade investigation into China's production of legacy semiconductors, which are essential components in products like automobiles, appliances, medical devices, and defense systems. The U.S. Trade Representative's office announced that the probe is based on evidence suggesting that China is utilizing anti-competitive and non-market policies to dominate global chip production. The investigation will also examine components and end-use products containing Chinese legacy chips and could lead to new tariffs or other measures to block imports of Chinese-made chips. The Biden administration expressed concerns that China's rapid, state-driven expansion of semiconductor output is artificially lowering chip prices, harming U.S. businesses and workers. China's Commerce Ministry has strongly opposed the Section 301 investigation, stating that it will disrupt the global chip industry and supply chains, harm the interests of U.S. firms and consumers, and vowed to take all necessary measures to safeguard its rights and interests. The probe will be handed over to the incoming Trump administration in January.