Joe Biden Launches Major Trade Investigation Into China

Source: Newsweek

Published Dec 23, 2024 at 10:36 AM EST Updated Dec 23, 2024 at 5:55 PM EST


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The Biden administration has launched a probe into "unfair trade practices" by China in the semiconductor supply chain, paving the way for a new round of tariffs once President-elect Donald Trump takes office.

On Monday, the White House announced that the Office of the U.S. Trade Representative (USTR) will be undertaking a Section 301 investigation, relating to violations of the 1974 Trade Act and discriminatory foreign government practices that "burden U.S. commerce." The investigation will examine China's manufacturing and increasing dominance of the market for foundational, or "legacy" semiconductors, which possess widespread applications in the production of most home appliances, consumer electronics and automobiles.

"The People's Republic of China (PRC) routinely engages in non-market policies and practices, as well as industrial targeting, of the semiconductor industry that enables PRC companies to significantly harm competition and create dangerous supply chain dependencies in foundational semiconductors," the White House said.

"Evidence indicates that China seeks to dominate domestic and global markets in the semiconductor industry and undertakes extensive anticompetitive and non-market means, including setting and pursuing market share targets, to achieve indigenization and self-sufficiency," said Office of U.S. Trade Representative Katherine Tai. "China's acts, policies, and practices appear to have and to threaten detrimental impacts on the United States and other economies, undermining the competitiveness of American industry and workers, critical U.S. supply chains, and U.S. economic security."

Read more: https://www.newsweek.com/joe-biden-china-trade-investigation-tariffs-trump-2005173