On March 22, 2018, the President issued a Presidential Memorandum in which he announced the actions the United States will take in response to China’s allegedly unfair trade practices found by the Office of the United States Trade Representative (USTR) in its Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. The actions are as follows:

Tariffs – The President instructed USTR to publish a proposed list of products with proposed tariff increases within 15 days of the date of the Memorandum. USTR will allow for notice and comment on the proposed list before publishing a final list and implementing any tariffs. USTR announced that the proposed list will be published in the Federal Register and comments will be due within 30 days of publication.  The Federal Register notice will also announce a date for a public hearing.

WTO Dispute Settlement – The President instructed USTR to pursue dispute settlement at the WTO regarding China’s discriminatory technology licensing practices and report its progress to the President within 60 days. In accordance with the President’s Memorandum, USTR has already filed a request for consultations with China at the WTO

Investment Restrictions – The President instructed the Secretary of the Treasury to propose executive branch action to address concerns about investment in the United States directed or facilitated by China in industries or technologies deemed important to the United States. The Secretary must report his progress to the President within 60 days.

The practical effects of this announcement will be clearer in the near future when the exact Chinese products affected will be announced and when the Chinese government announces its reaction, which is likely to start with its own retaliatory tariffs.  We are monitoring the situation closely and will provide updates as information becomes available. For additional information, please contact Stephen Brophy, Nithya Nagarajan or Jeffrey S. Neeley.

Tags: China, Licensing, trade policy, Trump Administration
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Photo of Jeffrey Neeley Jeffrey Neeley

Jeffrey has more than 25 years of experience representing private parties in international trade remedies disputes in the U.S. and in foreign jurisdictions. He guides clients in matters including antidumping investigations, countervailing duties, subsidies, intellectual property disputes as well as related customs, export…

Jeffrey has more than 25 years of experience representing private parties in international trade remedies disputes in the U.S. and in foreign jurisdictions. He guides clients in matters including antidumping investigations, countervailing duties, subsidies, intellectual property disputes as well as related customs, export control, and other import/export issues.

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Photo of Nithya Nagarajan Nithya Nagarajan

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory…

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory actions before the Department of Commerce, International Trade Commission and U.S. Customs and Border Protection (CBP) and defends clients in appeals before the Court of International Trade, Court of Appeals for the Federal Circuit, NAFTA panels and the World Trade Organization. In addition to her body of U.S. experience, Nithya is also well-versed in international trade issues in China and India.

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Photo of Stephen Brophy Stephen Brophy

Stephen brings more than 20 years of international trade experience to Husch Blackwell. His practice focuses on trade relief and regulation, representing clients in antidumping, countervailing duty and safeguard proceedings. He has assisted clients with these and other related matters before the U.S.

Stephen brings more than 20 years of international trade experience to Husch Blackwell. His practice focuses on trade relief and regulation, representing clients in antidumping, countervailing duty and safeguard proceedings. He has assisted clients with these and other related matters before the U.S. Department of Commerce and U.S. International Trade Commission. Stephen is also experienced with customs issues, including tariff classification, valuation and country of origin marking matters.

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