U.S. to launch investigation into Article 301 of the Trade Act on Chinese Semiconductors

The U.S. Joe Biden administration has launched an investigation into unfair trade practices targeting legacy Chinese semiconductors, or general-purpose semiconductors, used in automobiles and home appliances.The

U.S. Trade Representative said Chinese semiconductor companies have weakened U.S. economic security with government subsidies and "investigate actions, policies and practices for Chinese semiconductor domination under Section 301 of the Trade Act."

As a result, U.S. President-elect Donald Trump is expected to secure grounds for imposing high tariffs on Chinese products after the inauguration of the second administration on January 20 next year.

The survey will look at how Chinese-made general-purpose semiconductors, silicon carbide substrates and semiconductor manufacturing wafers are integrated into key industries such as defense, automotive, medical, aerospace, telecommunications, power generation, and power grids.

It can also recommend retaliatory tariffs, import restrictions or additional measures to the U.S. president and Congress if China's actions are found to be unreasonable or discriminatory and burdens U.S. commerce.