Actions by the United States Related to the Statutory 4-Year Review of the Section 301 Investigation of China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 44541-44543 [2024-11193]

Agencies

• Executive Office of the President

[Federal Register Volume 89, Number 98 (Monday, May 20, 2024)]
[Presidential Documents]
[Pages 44541-44543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11193]



[[Page 44539]]

Vol. 89

Monday,

No. 98

May 20, 2024

Part VI





The President





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Memorandum of May 14, 2024--Actions by the United States Related to the 
Statutory 4-Year Review of the Section 301 Investigation of China's 
Acts, Policies, and Practices Related to Technology Transfer, 
Intellectual Property, and Innovation


                        Presidential Documents 



Federal Register / Vol. 89, No. 98 / Monday, May 20, 2024 / 
Presidential Documents

___________________________________________________________________

Title 3--
The President

[[Page 44541]]

                Memorandum of May 14, 2024

                
Actions by the United States Related to the 
                Statutory 4-Year Review of the Section 301 
                Investigation of China's Acts, Policies, and Practices 
                Related to Technology Transfer, Intellectual Property, 
                and Innovation

                Memorandum for the United States Trade Representative

                On May 5, 2022, the United States Trade Representative 
                (Trade Representative) initiated the statutory 4-year 
                review of the July 6, 2018, and the August 23, 2018, 
                actions, as modified (two actions), taken under section 
                301 of the Trade Act of 1974, as amended (19 U.S.C. 
                2411) (Trade Act), in the investigation of China's 
                Acts, Policies, and Practices Related to Technology 
                Transfer, Intellectual Property, and Innovation 
                (section 301 investigation). The July 6, 2018, and the 
                August 23, 2018, actions were subsequently modified by 
                imposing additional duties on supplemental lists of 
                products, as well as by the temporary removal of duties 
                on certain products through product exclusions. The 
                Trade Representative initiated the May 5, 2022, review 
                of the two actions under section 307(c)(3) of the Trade 
                Act (19 U.S.C. 2417(c)(3)).

                During its review, the Office of the United States 
                Trade Representative (USTR) sought and received 
                approximately 1,500 written submissions. Pursuant to 
                section 307(c)(3) of the Trade Act (19 U.S.C. 
                2417(c)(3)), and based on information obtained during 
                the review, including the written submissions, USTR and 
                the section 301 Committee prepared a comprehensive 
                report on the effectiveness of the two 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.

                The Trade Representative has advised me on the findings 
                in the review, and taking into consideration these 
                findings, I find as follows:

                First, while imposition of tariffs under section 301 of 
                the Trade Act (section 301 tariffs) has been effective 
                in encouraging China to take positive steps in 
                addressing the issues identified in the section 301 
                investigation, such as certain revisions in its foreign 
                investment and administrative licensing laws, China's 
                actions do not represent a systematic and sustained 
                response to the issues raised in the section 301 
                investigation.

                Second, China has not eliminated many of the technology 
                transfer-related acts, policies, and practices at 
                issue, nor removed their burden or restriction on 
                United States commerce.

                Third, although China has taken limited measures to 
                address negative perceptions of its technology 
                transfer-related acts, policies, and practices, it 
                continues to aggressively attempt to acquire and absorb 
                foreign technology and intellectual property, 
                particularly through cyber intrusions and cybertheft, 
                adding to the burden or restriction on United States 
                commerce.

                Fourth, the section 301 tariffs have been effective to 
                an extent in reducing the exposure of United States 
                persons and commerce to China's acts, policies, and 
                practices at issue.

                Fifth, additional section 301 tariffs would provide 
                incentives for China to eliminate the acts, policies, 
                and practices at issue.

[[Page 44542]]

                It is hereby directed as follows:

                Section 1. Tariffs. (a) The Trade Representative shall 
                maintain, as appropriate and consistent with this 
                memorandum, the ad valorem rates of duty and lists of 
                products subject to the two actions, taken under the 
                section 301 investigation. To further encourage China 
                to eliminate the acts, policies, and practices at 
                issue, and to counteract the burden or restriction of 
                these acts, policies, and practices, the Trade 
                Representative shall modify the two actions to increase 
                section 301 ad valorem rates of duty for the following 
                products from China:

   Battery parts (non-lithium-ion batteries): Increase rate to 25 
percent in 2024;

   Electric vehicles: Increase rate to 100 percent in 2024;

   Lithium-ion electrical vehicle batteries: Increase rate to 25 
percent in 2024;

   Lithium-ion non-electrical vehicle batteries: Increase rate to 
25 percent in 2026;

   Natural graphite: Increase rate to 25 percent in 2026;

   Other critical minerals: Increase rate to 25 percent in 2024;

   Permanent magnets: Increase rate to 25 percent in 2026;

   Semiconductors: Increase rate to 50 percent in 2025;

   Ship to shore cranes: Increase rate to 25 percent in 2024;

   Solar cells (whether or not assembled into modules): Increase 
rate to 50 percent in 2024; and

   Steel and aluminum products: Increase rate to 25 percent in 
2024.

                For personal protective equipment (facemasks, medical 
                gloves, and syringes and needles), the Trade 
                Representative is directed to increase rates of duty to 
                no less than the rates indicated:

   Facemasks: Increase rate to 25 percent in 2024;

   Medical gloves: Increase rate to 25 percent in 2026; and

   Syringes and needles: Increase rate to 50 percent in 2024.

                    (b) To advance the purposes of subsection (a) of 
                this section, the Trade Representative shall publish a 
                proposed list of products and corresponding tariff 
                increases. After a period of notice and comment in 
                accordance with section 307(a) of the Trade Act (19 
                U.S.C. 2417(a)), and after consultation with 
                appropriate agencies and committees, the Trade 
                Representative shall, as appropriate and consistent 
                with law, publish a final list of products and tariff 
                increases, if any, and implement any such tariffs.
                    (c) The Trade Representative shall also establish a 
                process by which interested persons may request that 
                particular machinery used in domestic manufacturing 
                classified within a subheading under chapters 84 and 85 
                of the Harmonized Tariff Schedule of the United States 
                be temporarily excluded from section 301 tariffs, and 
                shall prioritize, in particular, exclusions for certain 
                solar manufacturing equipment. USTR shall publish a 
                separate notice describing the machinery exclusion 
                process, including the procedures for submitting 
                exclusion requests and for interested persons to oppose 
                any such requests.

[[Page 44543]]

                Sec. 2. Publication. The Trade Representative is 
                authorized and directed to publish this memorandum in 
                the Federal Register.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    May 14, 2024.

[FR Doc. 2024-11193
Filed 5-17-24; 11:15 am]
Billing code 3290-F7-P