Biden Initiates Section 301 Probe on Chinese Legacy Semiconductors, Handing Over to Trump

Dec 23, 2024, 02:41 PM

The Biden administration has launched a last-minute trade investigation into Chinese-made 'legacy' semiconductors under Section 301 of the Trade Act of 1974, which could lead to additional U.S. tariffs on these chips used in everyday products like autos, appliances, and medical devices. The investigation will be handed over to the incoming Trump administration for completion. U.S. Trade Representative Katherine Tai stated that the probe aims to protect American and other semiconductor producers from China's state-driven efforts to dominate the global chip market. The investigation will also examine the incorporation of these chips into downstream components and end-use goods for critical industries such as defense, automotive, and medical devices. China's Commerce Ministry has criticized the investigation as protectionist, warning that it could disrupt global chip supply chains and harm U.S. firms and consumers. Beijing has vowed to take necessary measures to defend its rights and interests.