Request for Comments in Four-Year Review of Actions Taken in the Section 301 Investigation: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
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Abstract
USTR is conducting a four-year review of the July 6, 2018 action, as modified, and the August 23, 2018 action, as modified, in the section 301 investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. As part of the review, USTR is seeking public comments on the effectiveness of the actions in achieving the objectives of the investigation, other actions that could be taken, and the effects of such actions on the United States economy, including consumers.
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<title>Federal Register, Volume 87 Issue 199 (Monday, October 17, 2022)</title>
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[Federal Register Volume 87, Number 199 (Monday, October 17, 2022)]
[Notices]
[Pages 62914-62915]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-22469]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket Number USTR-2022-0014]
Request for Comments in Four-Year Review of Actions Taken in the
Section 301 Investigation: China's Acts, Policies, and Practices
Related to Technology Transfer, Intellectual Property, and Innovation
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Request for comments.
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SUMMARY: USTR is conducting a four-year review of the July 6, 2018
action, as modified, and the August 23, 2018 action, as modified, in
the section 301 investigation of China's Acts, Policies, and Practices
Related to Technology Transfer, Intellectual Property, and Innovation.
As part of the review, USTR is seeking public comments on the
effectiveness of the actions in achieving the objectives of the
investigation, other actions that could be taken, and the effects of
such actions on the United States economy, including consumers.
DATES:
November 15, 2022 at 12:01 a.m. EST: The public docket on the web
portal at <a href="https://comments.USTR.gov">https://comments.USTR.gov</a> will open for interested persons to
submit comments.
January 17, 2023 at 11:59 p.m. EST: To be assured of consideration,
submit written comments on the public docket by this date.
ADDRESSES: You must submit all comments through the online portal:
<a href="https://comments.USTR.gov">https://comments.USTR.gov</a>.
FOR FURTHER INFORMATION CONTACT: For questions about this notice,
contact Associate General Counsels Philip Butler or Megan Grimball at
(202) 395-5725.
SUPPLEMENTARY INFORMATION:
A. Background
On August 24, 2017, the U.S. Trade Representative initiated an
investigation into certain acts, policies, and practices of the
Government of China related to technology transfer, intellectual
property, and innovation under section 301 of the Trade Act of 1974, as
amended (Trade Act). See 82 FR 40213. In a notice published on April 6,
2018, the U.S. Trade Representative determined that acts, policies, and
practices of the Government of China related to technology transfer,
intellectual property, and innovation are unreasonable or
discriminatory, and burden or restrict U.S. commerce, and are thus
actionable under section 301(b) of the Trade Act. See 83 FR 14906 (the
April 6 notice). In particular:
1. China uses foreign ownership restrictions, such as joint venture
requirements and foreign equity limitations, and various administrative
review and licensing processes, to require or pressure technology
transfer from U.S. companies.
2. China's regime of technology regulations forces U.S. companies
seeking to license technologies to Chinese entities to do so on non-
market-based terms that favor Chinese recipients.
3. China directs and unfairly facilitates the systematic investment
in, and acquisition of, U.S. companies and assets by Chinese companies
to obtain cutting-edge technologies and intellectual property and
generate the transfer of technology to Chinese companies.
4. China conducts and supports unauthorized intrusions into, and
theft
[[Page 62915]]
from, the computer networks of U.S. companies to access their sensitive
commercial information and trade secrets.
Following a notice and comment process on the proposed action to be
taken in the investigation, the U.S. Trade Representative took two
actions under section 301 of the Trade Act: the July 6, 2018 action,
covering an approximate annual trade value of $34 billion (List 1) and
the August 23, 2018 action, covering an approximate annual trade value
of $16 billion (List 2). See 83 FR 28710 (July 6, 2018 action) and 83
FR 40823 (August 23, 2018 action). These actions were subsequently
modified by imposing additional duties on supplemental lists of
products, known as Lists 3 and 4, as well as by the temporary removal
of duties on certain products through product exclusions.
On May 5, 2022, USTR announced that under section 307(c)(2) of the
Trade Act (19 U.S.C. 2417(c)(2)), the July 6, 2018 action, as modified,
and the August 23, 2018 action, as modified, were subject to possible
termination on their respective four-year anniversary dates (i.e., July
6, 2022 and August 23, 2022, respectively) and of the opportunity for
representatives of domestic industries which benefit from the trade
actions to request continuation of the actions during the last sixty
days of such four-year periods. See 87 FR 26797 (May 5 notice).
On September 8, 2022, USTR announced that the July 6, 2018 action,
as modified, and the August 23, 2018 action, as modified, would remain
in effect because at least one representative of a domestic industry
which benefits from each action, as modified, submitted to the U.S.
Trade Representative a request for continuation of the action, as
modified. See 87 FR 55073 (September 8, 2022). The notice also
announced that, in accordance with section 307(c)(3) of the Trade Act
(19 U.S.C. 2417(c)(3)), the U.S. Trade Representative would conduct a
review of the July 6, 2018 and August 23, 2018 actions, as modified,
and that USTR would publish a separate notice or separate notices
describing the review process. See 87 FR 55073.
B. Four-Year Review of the Actions Taken Under Section 301, as Modified
Following receipt of an appropriate request to continue an action
taken under section 301, section 307(c) requires the U.S. Trade
Representative to conduct a review of: (A) the effectiveness in
achieving the objectives of section 301 of (i) such action, and (ii)
other actions that could be taken (including actions against other
products or services), and (B) the effects of such actions on the
United States economy, including consumers. See 19 U.S.C. 2417(c)(3)(A)
and (B).
To aid in this review, USTR is opening a docket on November 15,
2022 for interested persons to submit comments with respect to any
aspect of the above considerations, including comments on:
[ssquf] The effectiveness of the actions in obtaining the
elimination of China's acts, policies, and practices related to
technology transfer, intellectual property, and innovation.
[ssquf] The effectiveness of the actions in counteracting China's
acts, policies, and practices related to technology transfer,
intellectual property, and innovation.
[ssquf] Other actions or modifications that would be more effective
in obtaining the elimination of or in counteracting China's acts,
policies, and practices related to technology transfer, intellectual
property, and innovation.
[ssquf] The effects of the actions on the U.S. economy, including
U.S. consumers.
[ssquf] The effects of the actions on domestic manufacturing,
including in terms of capital investments, domestic capacity and
production levels, industry concentrations, and profits.
[ssquf] The effects of the actions on U.S. technology, including in
terms of U.S. technological leadership and U.S. technological
development.
[ssquf] The effects of the actions on U.S. workers, including with
respect to employment and wages.
[ssquf] The effects of the actions on U.S. small businesses.
[ssquf] The effects of the actions on U.S. supply chain resilience.
[ssquf] The effects of the actions on the goals of U.S. critical
supply chains outlined in Executive Order 14017 and in subsequent
reports and findings.
[ssquf] Whether the actions have resulted in higher additional
duties on inputs used for additional manufacturing in the United States
than the additional duties on particular downstream product(s) or
finished good(s) incorporating those inputs.
In order to facilitate preparation of comments prior to the
November 15 opening of the web portal, USTR intends to post a copy of
questions for the docket by November 1, 2022. The questions will be
posted at <a href="https://comments.USTR.gov">https://comments.USTR.gov</a>.
In the course of the review, USTR will evaluate whether to provide
additional opportunities for public comment through additional written
comments or through public hearings. Any further opportunities for
public comment will be addressed in subsequent notices.
C. Submissions Instructions
To be assured of consideration in this stage of the four-year
review, interested parties should submit comments following the
November 15, 2022 opening of the public docket on the portal, and by no
later than January 17, 2023. This includes interested parties that
previously provided responses in the prior stage of the review
regarding continuation.
By submitting a comment, the commenter certifies that the
information provided is complete and correct to the best of their
knowledge.
USTR's portal will allow for the submission of Business
Confidential Information (BCI). Information regarding the procedures
for submitting BCI will be specified on the portal.
USTR will post submissions in the docket for public inspection,
except business confidential information. You can view submissions on
USTR's web portal at <a href="https://comments.USTR.gov">https://comments.USTR.gov</a> through docket number
USTR-2022-0014.
Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2022-22469 Filed 10-14-22; 8:45 am]
BILLING CODE 3390-F3-P
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