Godsent Clement 
china semiconductor
The United States has launched a fresh trade investigation into China’s production of “legacy” semiconductors—chips essential for many everyday products like cars and coffee makers. Announced Monday, the move could lead to new tariffs on Chinese imports and escalates tensions between the world’s two largest economies.
The investigation, led by the U.S. Trade Representative (USTR), falls under Section 301 of the Trade Act of 1974. This allows the U.S. to address unfair trade practices that threaten American industries. According to the USTR, China uses “anticompetitive and non-market means” to dominate the semiconductor market, which poses risks to U.S. businesses and critical supply chains.
“This step highlights our administration’s dedication to protecting American workers and businesses, strengthening supply chains, and supporting significant investments in this sector,” said U.S. Trade Representative Katherine Tai.
The timing of the announcement—just weeks before President-elect Donald Trump takes office—raises speculation about whether his administration will expand the probe. Trump, during his campaign, threatened tariffs of up to 60% on Chinese imports, signaling a tougher stance on trade relations.
Even before this new investigation, U.S.-China trade tensions had been mounting. President Joe Biden retained $370 billion in tariffs on Chinese goods introduced during Trump’s tenure. Biden also added a 50% import tax on Chinese semiconductors and tightened restrictions on advanced chip exports to China.
China has pushed back strongly, accusing the U.S. of “weaponizing trade” and warning that these moves could disrupt global supply chains. Beijing claims these actions undermine international trade rules and market principles.
The investigation will include public input starting January 6, followed by hearings in March. Its focus will be on whether China’s semiconductor practices create unfair burdens on U.S. commerce.
As legacy semiconductors are key components in many industries, this probe could have wide-reaching effects on both the U.S. and global markets. With trade relations between Washington and Beijing already tense, this investigation adds another layer of complexity to an ongoing economic rivalry.
About The Author
