United States of America: Trade Representative announced Section 301 investigation into China's targeting of foundational semiconductors over alleged anticompetitive practices

On 23 December 2024, the Office of the U.S. Trade Representative announced a Section 301 investigation to examine China's targeting of foundational semiconductors, citing concerns over anticompetitive and non-market tactics aimed at global dominance. The Section 301 investigation allows the U.S. Trade Representative to examine and address unfair foreign trade practices that burden or restrict U.S. commerce, with potential actions including tariffs or other trade measures. The investigation will assess the effects of China's actions, policies, and practices on the production of silicon carbide substrates and other wafers used in semiconductor fabrication. The investigation covers a range of China's non-market activities in the semiconductor sector, including how these semiconductors are incorporated into finished goods and downstream products for critical industries. These industries include defense, automotive, medical devices, aerospace, telecommunications, and power generation and the electrical grid. The USTR alleges that China’s state-backed expansion and subsidies create unfair market conditions, suppress competition, and risk overconcentration of production.