SUPPLEMENTARY INFORMATION:

A. Background

For background on the actions, modifications, and four-year review process taken under Section 301 of the Trade Act of 1974, as amended (Trade Act) (19 U.S.C. 2411), in the investigation of China's acts, policies, and practices related to technology transfer, intellectual property, and innovation, please see 91 FR 24636 (May 6, 2026) (May 6 notice).

As stated in the May 6 notice, under Section 307(c)(1)(B) of the Trade Act (19 U.S.C. 2417(c)(1)(B)), the July 6, 2018 Section 301 action, as modified, and the August 23, 2018 Section 301 action, as modified, were subject to possible termination on their respective four-year anniversary dates ( i.e., July 6, 2026, and August 23, 2026, respectively) unless a representative of a domestic industry that benefits from the action submitted in the sixty-day period prior to the four-year anniversary of the action a request that the action continue.

Pursuant to Section 307(c)(2) of the Trade Act (19 U.S.C. 2417(c)(2)), USTR notified representatives of domestic industries that may benefit from either the July 6, 2018, or August 23, 2018 actions, as modified, of the possible termination of the actions, and of the opportunity for these representatives to request continuation of the actions. See May 6 notice. As provided in the May 6 notice, representatives of domestic industries that benefit from the July 6, 2018 action, as modified, were afforded the opportunity to submit between May 7, 2026, and July 5, 2026, a request to continue the action, and representatives of domestic industries that benefit from the August 23, 2018 action, as modified, were afforded the opportunity to submit such requests between June 24, 2026, and August 22, 2026.

B. Continuation of Actions

USTR received numerous requests to continue the July 6, 2018 and August 23, 2018 actions, as modified, from a range of domestic industries. For the July 6, 2018 action, USTR received 68 requests from domestic producers and 18 requests from trade associations. For the August 23, 2018 action, USTR received 57 requests from domestic producers and 19 requests from trade associations. Representatives of domestic industries reported that China's unfair policies and practices have persisted and that domestic industries continue to benefit from the trade actions in a number of ways. For example, they reported that the actions continue to provide an incentive for the Chinese government to stop the unreasonable and discriminatory policies and practices that are the basis for the tariff actions. Furthermore, the actions have helped to address some of the unfair competition resulting from China's technology transfer policies and practices and encourage better policies and practices. Additionally, representatives stated that the actions have allowed them to compete against Chinese imports and have encouraged domestic investment in new technologies, the expansion of domestic production, and the reshoring of vital industries.

Based on the written requests for continuation of each action received in the sixty-day period prior to the four-year anniversary of the action from representatives of a domestic industry that benefit from each action, and in accordance with Section 307(c)(1)(B) of the Trade Act (19 U.S.C. 2417(c)(1)(B)), the July 6, 2018 action, as modified, and the August 23, 2018 action, as modified, did not terminate on their four-year anniversary dates, July 6, 2026, and August 23, 2026, and accordingly will remain in effect.

C. Further Steps in Statutory Four-Year Review

In light of the continuation of the actions, and in accordance with Section 307(c)(3) of the Trade Act (19 U.S.C. 2417(c)(3)), the U.S. Trade Representative will conduct a review of the July 6, 2018 and August 23, 2018 actions, as modified. USTR will publish a separate notice or notices describing the review process. The process will include inviting interested persons to submit comments on the effectiveness of the 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. See19 U.S.C. 2417(c)(3)).

91 FR 64212