USTR initiates Section 301 investigation on China’s semiconductor ‘targeting’

United States Trade Representative Katherine Tai announced the initiation of an investigation regarding China’s “acts, policies, and practices related to targeting of the semiconductor industry for dominance.” The investigation will be conducted under Section 301 of the Trade Act of 1974, as amended. “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. 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,” the USTR stated. “This investigation underscores the Biden-Harris Administration’s commitment to standing up for American workers and businesses, increasing the resilience of critical supply chains, and supporting the unparalleled investment being made in this industry,” said Ambassador Katherine Tai. Publicly traded companies in the semiconductor space include AMD (AMD), Intel (INTC), Marvell (MRVL), Microchip (MCHP), Micron (MU), Nvidia (NVDA), Qualcomm (QCOM) and Texas Instruments (TXN).