Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 106725 

OFFICE OF THE UNITED STATES 

TRADE REPRESENTATIVE 

[Docket Nos. USTR–2024–0024 and USTR– 

2024–0025] 

Initiation of Section 301 Investigation; 

Hearing; and Request for Public 

Comments: China’s Acts, Policies, and 

Practices Related to Targeting of the 

Semiconductor Industry for 

Dominance 

AGENCY: Office of the United States 

Trade Representative (USTR). 

ACTION: Notice of initiation of 

investigation and a hearing, and a 

request for comments. 

SUMMARY: The U.S. Trade 

Representative has initiated an 

investigation, of China’s acts, policies, 

and practices related to targeting of the 

semiconductor industry for dominance. 

The inter-agency Section 301 Committee 

is holding a public hearing and seeking 

public comments in connection with 

this investigation. 

DATES: 

December 23, 2024: The U.S. Trade 

Representative initiated the 

investigation. 

January 6, 2025: USTR will open 

dockets for submission of written 

comments and requests to appear at the 

hearing. 

February 5, 2025, at 11:59 p.m. EST: 

To be assured of consideration, submit 

written comments by this date. 

February 24, 2025, at 11:59 p.m. EST: 

To be assured of consideration, submit 

requests to appear at the hearing, along 

with a summary of the testimony, by 

this date. 

March 11–12, 2025: Public hearing. 

Seven calendar days after the last day 

of the public hearing: Due date for 

submission of post-hearing rebuttal 

comments. 

ADDRESSES: Submit documents in 

response to this notice, including 

written comments, hearing appearance 

requests, summaries of testimony, and 

post-hearing rebuttal comments through 

the online USTR portal: https://

comments.ustr.gov/s/. 

FOR FURTHER INFORMATION CONTACT: For 

procedural questions concerning 

comments or participating in the public 

hearing, contact the USTR Section 

support line at 202.395.5725. Direct all 

other questions regarding this notice to 

Philip Butler and Megan Grimball, 

Chairs of the Section 301 Committee; 

Brian Janovitz, Chief Counsel for Trade 

Enforcement Strategy and 

Competitiveness; or Erin Biel, Assistant 

General Counsel at 202.395.5725. 

SUPPLEMENTARY INFORMATION: 

I. China’s Acts, Policies, and Practices 

Evidence indicates that the People’s 

Republic of China (the PRC or China) 

has adopted acts, policies, and practices 

related to targeting of the semiconductor 

industry for dominance. China 

apparently seeks to dominate domestic 

and global markets in the 

semiconductor industry and undertakes 

extensive anticompetitive and nonmarket means, including setting and 

pursuing market share targets, to 

achieve indigenization and selfsufficiency. The PRC’s acts, policies, 

and practices also appear to have and to 

threaten detrimental impacts on the 

United States and other economies, 

undermining the competitiveness of 

American industry and workers, critical 

U.S. supply chains, and U.S. economic 

security. 

Evidence indicates that the PRC’s 

acts, policies, and practices have been 

reflected in various economic and 

industrial plans issued by the PRC. For 

example, Made in China 2025 set 

numerical targets for the PRC’s domestic 

semiconductor capacity and production 

that reflect China’s targeting of the 

semiconductors sector for dominance. 

Evidence further indicates that the PRC 

pursues its targeting of the 

semiconductor industry through an 

extensive range of anticompetitive and 

non-market means, including through 

Chinese Communist Party guidance, 

directives, and control within state and 

private enterprises; activities of stateowned or state-controlled enterprises; 

market access restrictions; opaque 

regulatory preferences and 

discrimination; wage-suppressing labor 

practices; massive and persistent state 

financial support of industry, including 

government guidance funds; and forced 

technology transfer, including statedirected cyber intrusions and cybertheft 

of intellectual property. 

Evidence indicates that the PRC’s 

targeting of the semiconductor industry 

for dominance is leading to significant 

capacity expansion, artificially and 

unsustainably lower domestic and 

global prices, a protected domestic 

market, and emerging overconcentration 

of production capacity in the PRC. 

Evidence indicates that in just six years, 

China has nearly doubled its global 

share of foundational logic 

semiconductors production capacity. 

Based on announced new fabrication 

plants (fabs), China’s share is projected 

to reach approximately half of the 

world’s capacity by 2029. In addition, 

projections show that China will lead in 

production capacity for other types of 

legacy semiconductors, such as power 

chips. Evidence further suggests that the 

PRC’s non-market-oriented expansion of 

capacity is already discouraging 

investment by market-oriented actors. 

II. Initiation of Section 301 

Investigation 

Section 302(b)(1)(A) of the Trade Act 

of 1974, as amended (Trade Act), 

authorizes the U.S. Trade 

Representative to initiate an 

investigation to determine whether an 

act, policy, or practice of a foreign 

country is actionable under section 301 

of the Trade Act. Actionable matters 

under section 301 include acts, policies, 

and practices of a foreign country that 

are unreasonable or discriminatory and 

burden or restrict U.S. commerce. An 

act, policy, or practice is unreasonable 

if, while not necessarily in violation of, 

or inconsistent with, the international 

legal rights of the United States, it is 

otherwise unfair and inequitable. 

On December 23, 2024, the U.S. Trade 

Representative initiated a section 301 

investigation of China’s acts, policies, 

and practices related to targeting of the 

semiconductor industry for dominance. 

Pursuant to section 302(b)(1)(B) of the 

Trade Act, USTR has consulted with 

appropriate advisory committees and 

the inter-agency Section 301 Committee. 

Pursuant to section 303(a) of the Trade 

Act, USTR is requesting consultations 

with the Government of China. 

Pursuant to section 304 of the Trade 

Act, USTR must determine whether the 

act, policy, or practice under 

investigation is actionable under section 

301. If that determination is affirmative, 

the U.S. Trade Representative must 

determine whether action is 

appropriate, and if so, what action to 

take. 

This investigation initially will focus 

on PRC manufacturing of foundational 

semiconductors (also known as legacy 

or mature node semiconductors), 

including to the extent that they are 

incorporated as components into 

downstream products for critical 

industries like defense, automotive, 

medical devices, aerospace, 

telecommunications, and power 

generation and the electrical grid. The 

investigation also will initially assess 

whether the impact of the PRC’s acts, 

policies, and practices on the 

production of silicon carbide substrates 

(or other wafers used as inputs into 

semiconductor fabrication) contribute to 

any unreasonableness or discrimination 

or burden or restriction on U.S. 

commerce. In addition, the investigation 

will examine the relationship between 

the PRC’s acts, policies, and practices 

and existing or threatened non-market 

excess capacity or overconcentration of 

semiconductor production in the PRC, 


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106726 Federal Register / Vol. 89, No. 249 / Monday, December 30, 2024 / Notices 

and resulting dependencies and 

vulnerabilities that create risks for 

certain critical downstream industries, 

as well as harm to U.S. semiconductor 

producers and foundries. 

III. Request for Public Comments 

You may submit written comments on 

any issue covered by the investigation. 

In particular, USTR invites comments 

regarding: 

• China’s acts, policies, and practices 

related to its targeting of the 

semiconductor industry for dominance. 

• Anticompetitive and non-market 

means employed by the PRC in pursuit 

of its semiconductor industry targeting 

objectives, including political guidance, 

directives, and control within state and 

private enterprises, activities of stateowned or state-controlled enterprises, 

market access restrictions, opaque 

regulatory preferences and 

discrimination, wage-suppressing labor 

practices, massive state support of 

industry (including government 

guidance funds), and forced technology 

transfer (including state-directed cyber 

intrusions and cybertheft of intellectual 

property). 

• Whether China’s acts, policies, and 

practices are unreasonable or 

discriminatory. 

• Whether China’s acts, policies, and 

practices burden or restrict U.S. 

commerce, and if so, the nature and 

level of the burden or restriction. This 

would include economic assessments of 

the burden or restriction on 

semiconductors, semiconductor 

manufacturing including foundries, 

silicon carbide substrates or other 

wafers, and downstream products, with 

a particular focus on critical industries, 

such as defense, automotive, medical 

devices, aerospace, telecommunications, 

and power generation and the electrical 

grid. 

• Whether China’s acts, policies, and 

practices are actionable under section 

301(b) of the Trade Act, and what 

action, if any, should be taken, 

including tariff and non-tariff actions. 

To be assured of consideration, USTR 

must receive written comments by 11:59 

p.m. EST on February 5, 2025. 

Additional instructions on how to 

submit written comments are provided 

below in Part V. 

IV. Hearing Participation 

The Section 301 Committee will 

convene a public hearing on March 11, 

2025, and if needed, the hearing will 

continue on March 12, 2025. To testify 

at the hearing, you must submit a 

request to appear using the electronic 

portal at https://comments.ustr.gov/s/, 

following the instructions in Part V 

below. Requests to appear must include 

a summary of testimony, and may be 

accompanied by a prehearing 

submission. Remarks at the hearing are 

limited to five minutes to allow for 

possible questions from the Section 301 

Committee. All submissions must be in 

English. To be assured of consideration, 

USTR must receive your request to 

appear and summary of the testimony 

by February 24, 2025. 

Post-hearing rebuttal comments, 

which should be limited to rebutting or 

supplementing testimony presented at 

the hearing, may be submitted within 

seven calendar days after the last day of 

the public hearing. Rebuttal comments 

must be submitted using the electronic 

portal at https://comments.ustr.gov/s/, 

following the instructions in Part V 

below. 

V. Submissions Instructions 

Interested persons must submit 

written comments, requests to appear at 

the hearing, summaries of testimony, 

and post-hearing rebuttal comments 

using the appropriate docket on the 

portal at https://comments.ustr.gov/s/. 

To make a submission, use the docket 

on the portal entitled ‘Request for 

Comments on the Section 301 

Investigation of China’s Acts, Policies, 

and Practices Related to Targeting of the 

Semiconductor Industry for 

Dominance,’ docket number USTR– 

2024–0024. Interested persons wishing 

to provide testimony at the hearing must 

submit a notification of intent and 

summary of testimony using the docket 

entitled ‘Request to Appear at the 

Hearing on the Section 301 Investigation 

of China’s Acts, Policies, and Practices 

Related to Targeting of the 

Semiconductor Industry for 

Dominance,’ docket number USTR– 

2024–0025. 

You do not need to establish an 

account to submit comments or a 

notification of intent to testify. The first 

screen allows you to enter identification 

and contact information. Third party 

organizations such as law firms, trade 

associations, or customs brokers should 

identify the full legal name of the 

organization they represent and identify 

the primary point of contact for the 

submission. Information fields are 

optional. However, USTR may not 

consider your comment or request if 

insufficient information is provided. 

Fields with a gray Business Confidential 

Information (BCI) notation are for BCI 

information that will not be made 

publicly available. Fields with a green 

(Public) notation will be viewable by the 

public. After entering the identification 

and contact information, you can 

complete the remainder of the comment, 

or any portion of it, by clicking ‘Next.’ 

You may upload documents at the end 

of the form and indicate whether USTR 

should treat the documents as business 

confidential or public information. Any 

page containing BCI must be clearly 

marked ‘BUSINESS CONFIDENTIAL’ on 

the top of that page and the submission 

should clearly indicate, via brackets, 

highlighting, or other means, the 

specific information that is BCI. If you 

request business confidential treatment, 

you must certify in writing that the 

information would not customarily be 

released to the public. Parties uploading 

attachments containing BCI also must 

submit a public version of their 

comments. If these procedures are not 

sufficient to protect BCI or otherwise 

protect business interests, please contact 

the USTR section 301 support line at 

202.395.5725 to discuss whether 

alternative arrangements are possible. 

USTR will post attachments uploaded to 

the docket for public inspection, except 

for properly designated BCI. You can 

view submissions on USTR’s electronic 

portal at https://comments.ustr.gov/s/. 

Juan Millan, 

Acting General Counsel, Office of the United 

States Trade Representative. 

[FR Doc. 2024–31306 Filed 12–27–24; 8:45 am] 

BILLING CODE 3390–F4–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

[Docket No.: FAA–2024–2728; Summary 

Notice No. –2024–46] 

Petition for Exemption; Summary of 

Petition Received; Hermeus Corp. 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice. 

SUMMARY: This notice contains a 

summary of a petition seeking relief 

from specified requirements of Federal 

Aviation Regulations. The purpose of 

this notice is to improve the public’s 

awareness of, and participation in, the 

FAA’s exemption process. Neither 

publication of this notice nor the 

inclusion nor omission of information 

in the summary is intended to affect the 

legal status of the petition or its final 

disposition. 

DATES: Comments on this petition must 

identify the petition docket number and 

must be received on or before January 

21, 2025. 

ADDRESSES: Send comments identified 

by docket number [FAA–2024–2728] 

using any of the following methods: 


ddrumheller on DSK120RN23PROD with NOTICES1