The investigation could result in tariffs on older types of chips from China, though the decision would ultimately fall to Trump.According to The New York Times, the Biden administration is considering launching a trade investigation into China’s production of older-model semiconductors. This is in response to concerns that the United States’ reliance on these chips could pose a national security threat. The investigation may result in tariffs, import bans, or other actions on certain Chinese chips and products containing them. However, the final decision would be made by the incoming Trump administration. The investigation is expected to take at least six months to conclude. The US government has previously focused on limiting China’s access to advanced semiconductors, but has not addressed their production of older chips. With China investing heavily in new factories to produce these chips, there are concerns that it could harm US chip factories and increase dependence on China. Commerce Secretary Gina Raimondo has suggested that tariffs may be necessary to address this issue. The Biden administration is considering two options for the investigation: Section 232 of the Trade Expansion Act, which focuses on national security threats, and Section 301 of the Trade Act of 1974, which addresses unjustifiable or unreasonable acts that burden US commerce.
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