Initiation of Second Four-Year Review Process: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
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Abstract
The U.S. Trade Representative is commencing the second, statutory four-year review of the two actions taken under Section 301 of the Trade Act of 1974, as amended (Trade Act), in the investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. The two actions were effective, respectively, on July 6, 2018, and August 23, 2018, and subsequently were modified by imposing additional duties on supplemental lists of products, by the temporary removal of duties on certain products through product exclusions, and through the first, statutory four-year review. The first step in the four-year review process is notifying representatives of domestic industries which benefit from the actions of the possible termination of the actions and of the opportunity for these representatives to request continuation of the actions. Requests for continuation must be received in the 60-day window prior to the second four-year anniversary of the respective action: (1) between May 7, 2026, and July 5, 2026, for the July 6, 2018, action; and (2) between June 24, 2026, and August 22, 2026, for the August 23, 2018, action. The Office of the United States Trade Representative (USTR) is notifying interested parties of these two time windows for representatives of domestic industries which benefit from the trade actions to request continuation of the corresponding trade actions through the USTR website portal. If the trade actions continue as a result of one or more requests from representatives of domestic industries which benefit from the actions, USTR will proceed with the next phase of the review of the trade actions. The second phase of the review would be announced in one or more subsequent notices and would provide opportunities for public comments from all interested parties.
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<title>Federal Register, Volume 91 Issue 87 (Wednesday, May 6, 2026)</title>
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[Federal Register Volume 91, Number 87 (Wednesday, May 6, 2026)]
[Notices]
[Pages 24636-24638]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08806]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Initiation of Second Four-Year Review Process: China's Acts,
Policies, and Practices Related to Technology Transfer, Intellectual
Property, and Innovation
AGENCY: Office of the United States Trade Representative.
ACTION: Notice.
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SUMMARY: The U.S. Trade Representative is commencing the second,
statutory four-year review of the two actions taken under Section 301
of the Trade Act of 1974, as amended (Trade Act), in the investigation
of China's Acts, Policies, and Practices Related to Technology
Transfer, Intellectual Property, and Innovation. The two actions were
effective, respectively, on July 6, 2018, and August 23, 2018, and
subsequently were modified by imposing additional duties on
supplemental lists of products, by the temporary removal of duties on
certain products through product exclusions, and through the first,
statutory four-year review. The first step in the four-year review
process is notifying representatives of domestic industries which
benefit from the actions of the possible termination of the actions and
of the opportunity for these representatives to request continuation of
the actions. Requests for continuation must be received in the 60-day
window prior to the second four-year anniversary of the respective
action: (1) between May 7, 2026, and July 5, 2026, for the July 6,
2018, action; and (2) between June 24, 2026, and August 22, 2026, for
the August 23, 2018, action. The Office of the United States Trade
Representative (USTR) is notifying interested parties of these two time
windows for representatives of domestic industries which benefit from
the trade actions to request continuation of the corresponding trade
actions through the USTR website portal. If the trade actions continue
as a result of one or more requests from representatives of
[[Page 24637]]
domestic industries which benefit from the actions, USTR will proceed
with the next phase of the review of the trade actions. The second
phase of the review would be announced in one or more subsequent
notices and would provide opportunities for public comments from all
interested parties.
DATES: For the July 6, 2018, trade action, the web portal at <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a> will open for requests to continue the action on
May 7, 2026, and close at 11:59 p.m. on July 5, 2026. For the August
23, 2018, trade action, the web portal at <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a>
will open for requests to continue the action on June 24, 2026, and
close at 11:59 p.m. on August 22, 2026.
FOR FURTHER INFORMATION CONTACT: Philip Butler or Megan Grimball,
Chairs of the Section 301 Committee, (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. 82 FR 40213. In a notice published on April
6, 2018, the U.S. Trade Representative announced a determination that
the acts, policies, and practices of the Government of China covered in
the investigation are unreasonable or discriminatory and burden or
restrict U.S. commerce. 83 FR 14906 (the ``April 6, 2018, notice'').
The April 6, 2018, notice also invited public comment on a proposed
action in the investigation, in the form of an additional 25 percent ad
valorem duty on products of China classified in a list of 1,333 tariff
subheadings, with an annual trade value of approximately $50 billion.
1. Actions Taken Under Section 301 of the Trade Act
Following a period of public notice and comment, the U.S. Trade
Representative determined to take action under Section 301 of the Trade
Act (19 U.S.C. 2411) in the form of additional duties of 25 percent ad
valorem on 818 of the proposed tariff subheadings, with an approximate
annual trade value of $34 billion, effective July 6, 2018 (List 1). 83
FR 28710 (the ``July 6, 2018, action''). The U.S. Trade Representative
also proposed further action in the form of additional ad valorem
duties of 25 percent on a list of 284 tariff subheadings with an
approximate annual trade value of $16 billion. Following a period of
notice and comment, the U.S. Trade Representative determined to take
action under Section 301 in the form of additional duties of 25 percent
on 279 tariff subheadings with an approximate annual trade value of $16
billion, effective August 23, 2018 (List 2). 83 FR 40823 (the ``August
23, 2018, action'').
2. Subsequent Modifications Under Section 307
The U.S. Trade Representative subsequently modified the July 6,
2018, action and the August 23, 2018, action pursuant to authority
under Section 307(a) of the Trade Act. (19 U.S.C. 2417(a)). These
modifications were in the form of (i) additional duties on supplemental
lists of products, (ii) the temporary removal of duties on certain
products through product exclusions, and (iii) increasing duties on
certain products as a result of the first, statutory four-year review.
The modifications to the July 6, 2018, action and August 23, 2018,
action that are currently in effect are as follows:
a. List 3--83 FR 47974 (September 21, 2018), as modified by 84 FR
20459 (May 9, 2019), and as amended by 84 FR 21892 (May 15, 2019); 84
FR 26930 (June 10, 2019); 86 FR 22092 (April 26, 2021); and 87 FR 9785
(February 22, 2022);
b. List 4A--84 FR 43304 (August 20, 2019), as modified by 84 FR
45821 (August 30, 2019), 84 FR 69447 (December 18, 2019), and 85 FR
3741 (January 22, 2020);
c. First Four-Year Review--89 FR 76581 (September 18, 2024) and 89
FR 101682 (December 16, 2024);
d. Exclusions--89 FR 46948 (May 30, 2024), as modified by 89 FR
64038 (August 6, 2024), 90 FR 23987 (June 5, 2025), 90 FR 42500
(September 2, 2025), and 90 FR 55232 (December 1, 2025).
In a second four-year review, USTR would examine the July 6, 2018,
action, and August 23, 2018, action, as modified, through these
notices.
B. First Phase of the Four-Year Review
The first phase in a four-year review process involves notification
to representatives of domestic industries which benefit from the July
6, 2018, action, and August 23, 2018, action, as modified, of the
possible termination of the actions and of the opportunity for these
representatives to request continuation of the actions. See Section
307(c)(2) of the Trade Act (19 U.S.C. 2417(c)(2)). By way of this
notice, USTR is notifying all representatives of domestic industries
which benefit from the July 6, 2018, action, and August 23, 2018,
action, as modified, of the possible termination of the actions and of
the opportunity for these representatives to request continuation of
the actions. USTR is also notifying by electronic mail representatives
of industry associations and labor groups that submitted requests for
continuation of one or both of the actions during the first four-year
review. Accordingly, representatives of domestic industries that
benefit from either trade action should submit requests for
continuation through the USTR portal, during the respective time
periods for the July 6, 2018 action, and the August 23, 2018 action.
C. Notification to Representatives of Domestic Industries That Benefit
From Either Trade Action Under Section 301
USTR is providing the following notice to representatives of
domestic industries which benefit from the July 6, 2018, action or the
August 23, 2018, action, as modified:
<bullet> Section 307(c)(1) of the Trade Act (19 U.S.C. 2417(c)(1))
provides that if--(A) a particular action has been taken under section
301 during any 4-year period, and (B) neither the petitioner nor any
representative of the domestic industry which benefits from such action
has submitted to the U.S. Trade Representative during the last 60 days
of such 4-year period a written request for the continuation of such
action, such action shall terminate at the close of such 4-year period.
<bullet> The investigation was self-initiated by the U.S. Trade
Representative, and thus no petitioner is involved.
<bullet> This investigation involves two actions under Section 301:
the July 6, 2018, action, and the August 23, 2018, action, as modified.
<bullet> Under Section 307(c)(1)(B) of the Trade Act (19 U.S.C.
2417(c)(1)(B)), the July 6, 2018, action and the August 23, 2018,
action, as modified, will terminate on their respective four-year
anniversary dates (i.e., July 6, 2026 and August 23, 2026,
respectively) unless a representative of a domestic industry which
benefits from the respective action submits in the 60-day period prior
to the four-year anniversary of the respective action a request that
the action continue.
<bullet> Representatives of a domestic industry which benefits from
either of the two actions may submit a request for continuation of an
action through the USTR portal, as detailed in this notice.
<bullet> Representatives of a domestic industry which benefits from
both of the trade actions under Section 301, as modified, should submit
two separate requests for continuation of each action within the two
respective 60-day time periods.
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D. Submission of Requests To Continue Either Action
Representatives of a domestic industry that benefits from either of
the two actions under Section 301, as modified, may submit a request to
continue the July 6, 2018 action, or the August 23, 2018 action, as
modified, or both, using the portal corresponding to the trade action
at <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a>, according to the following schedule:
<bullet> For the July 6, 2018, action, as modified, any
representative of a domestic industry which benefits from the action
may submit a request to continue the action between May 7, 2026, and
July 5, 2026.
<bullet> For the August 23, 2018 action, as modified, any
representative of domestic industries benefitting from the action may
submit a request to continue the action between June 24, 2026, and
August 22, 2026.
Fields marked with an asterisk (*) are required fields. A request
to continue the action should identify the specific industry concerned
and should address how the domestic industry benefits from the July 6,
2018, action or August 23, 2018, action, as modified. If a
representative of a domestic industry which benefits from an action
wishes to receive business confidential treatment for its request to
continue the action, please contact USTR at the number specified above.
Requests to continue the action will not be posted immediately, but
will be summarized in the notices announcing whether the July 6, 2018,
action or August 23, 2018, action, as modified will be continued.
E. Second Phase of the Review
USTR will announce in subsequent notices whether it has received a
request for continuation of the July 6, 2018, action or August 23,
2018, action, as modified, from a representative of a domestic industry
which benefits from the action. If USTR receives such a request, the
U.S. Trade Representative will announce the continuation of the action,
and will undertake a review of the action as described in Section
307(c)(3) of the Trade Act (19 U.S.C. 2417(c)(3)). As part of that
review, USTR intends to invite through a separate portal interested
persons to submit comments on, among other matters, the effectiveness
of the action in achieving the objectives of Section 301, other actions
that could be taken, and the effects of such actions on the United
States economy, including consumers.
Jennifer Thornton,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2026-08806 Filed 5-5-26; 8:45 am]
BILLING CODE 3390-F4-P
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