[Federal Register Volume 87, Number 199 (Monday, October 17, 2022)]
[Notices]
[Pages 62914-62915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22469]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2022-0014]


Request for Comments in Four-Year Review of Actions Taken in the 
Section 301 Investigation: China's Acts, Policies, and Practices 
Related to Technology Transfer, Intellectual Property, and Innovation

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Request for comments.

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SUMMARY: USTR is conducting a four-year review of the July 6, 2018 
action, as modified, and the August 23, 2018 action, as modified, in 
the section 301 investigation of China's Acts, Policies, and Practices 
Related to Technology Transfer, Intellectual Property, and Innovation. 
As part of the review, USTR is seeking public 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.

DATES: 
    November 15, 2022 at 12:01 a.m. EST: The public docket on the web 
portal at https://comments.USTR.gov will open for interested persons to 
submit comments.
    January 17, 2023 at 11:59 p.m. EST: To be assured of consideration, 
submit written comments on the public docket by this date.

ADDRESSES: You must submit all comments through the online portal: 
https://comments.USTR.gov.

FOR FURTHER INFORMATION CONTACT: For questions about this notice, 
contact Associate General Counsels Philip Butler or Megan Grimball at 
(202) 395-5725.

SUPPLEMENTARY INFORMATION:

A. Background

    On August 24, 2017, the U.S. Trade Representative initiated an 
investigation into certain acts, policies, and practices of the 
Government of China related to technology transfer, intellectual 
property, and innovation under section 301 of the Trade Act of 1974, as 
amended (Trade Act). See 82 FR 40213. In a notice published on April 6, 
2018, the U.S. Trade Representative determined that acts, policies, and 
practices of the Government of China related to technology transfer, 
intellectual property, and innovation are unreasonable or 
discriminatory, and burden or restrict U.S. commerce, and are thus 
actionable under section 301(b) of the Trade Act. See 83 FR 14906 (the 
April 6 notice). In particular:
    1. China uses foreign ownership restrictions, such as joint venture 
requirements and foreign equity limitations, and various administrative 
review and licensing processes, to require or pressure technology 
transfer from U.S. companies.
    2. China's regime of technology regulations forces U.S. companies 
seeking to license technologies to Chinese entities to do so on non-
market-based terms that favor Chinese recipients.
    3. China directs and unfairly facilitates the systematic investment 
in, and acquisition of, U.S. companies and assets by Chinese companies 
to obtain cutting-edge technologies and intellectual property and 
generate the transfer of technology to Chinese companies.
    4. China conducts and supports unauthorized intrusions into, and 
theft

[[Page 62915]]

from, the computer networks of U.S. companies to access their sensitive 
commercial information and trade secrets.
    Following a notice and comment process on the proposed action to be 
taken in the investigation, the U.S. Trade Representative took two 
actions under section 301 of the Trade Act: the July 6, 2018 action, 
covering an approximate annual trade value of $34 billion (List 1) and 
the August 23, 2018 action, covering an approximate annual trade value 
of $16 billion (List 2). See 83 FR 28710 (July 6, 2018 action) and 83 
FR 40823 (August 23, 2018 action). These actions were subsequently 
modified by imposing additional duties on supplemental lists of 
products, known as Lists 3 and 4, as well as by the temporary removal 
of duties on certain products through product exclusions.
    On May 5, 2022, USTR announced that under section 307(c)(2) of the 
Trade Act (19 U.S.C. 2417(c)(2)), the July 6, 2018 action, as modified, 
and the August 23, 2018 action, as modified, were subject to possible 
termination on their respective four-year anniversary dates (i.e., July 
6, 2022 and August 23, 2022, respectively) and of the opportunity for 
representatives of domestic industries which benefit from the trade 
actions to request continuation of the actions during the last sixty 
days of such four-year periods. See 87 FR 26797 (May 5 notice).
    On September 8, 2022, USTR announced that the July 6, 2018 action, 
as modified, and the August 23, 2018 action, as modified, would remain 
in effect because at least one representative of a domestic industry 
which benefits from each action, as modified, submitted to the U.S. 
Trade Representative a request for continuation of the action, as 
modified. See 87 FR 55073 (September 8, 2022). The notice also 
announced that, in accordance with section 307(c)(3) of the Trade Act 
(19 U.S.C. 2417(c)(3)), the U.S. Trade Representative would conduct a 
review of the July 6, 2018 and August 23, 2018 actions, as modified, 
and that USTR would publish a separate notice or separate notices 
describing the review process. See 87 FR 55073.

B. Four-Year Review of the Actions Taken Under Section 301, as Modified

    Following receipt of an appropriate request to continue an action 
taken under section 301, section 307(c) requires the U.S. Trade 
Representative to conduct a review of: (A) the effectiveness in 
achieving the objectives of section 301 of (i) such action, and (ii) 
other actions that could be taken (including actions against other 
products or services), and (B) the effects of such actions on the 
United States economy, including consumers. See 19 U.S.C. 2417(c)(3)(A) 
and (B).
    To aid in this review, USTR is opening a docket on November 15, 
2022 for interested persons to submit comments with respect to any 
aspect of the above considerations, including comments on:
    [ssquf] The effectiveness of the actions in obtaining the 
elimination of China's acts, policies, and practices related to 
technology transfer, intellectual property, and innovation.
    [ssquf] The effectiveness of the actions in counteracting China's 
acts, policies, and practices related to technology transfer, 
intellectual property, and innovation.
    [ssquf] Other actions or modifications that would be more effective 
in obtaining the elimination of or in counteracting China's acts, 
policies, and practices related to technology transfer, intellectual 
property, and innovation.
    [ssquf] The effects of the actions on the U.S. economy, including 
U.S. consumers.
    [ssquf] The effects of the actions on domestic manufacturing, 
including in terms of capital investments, domestic capacity and 
production levels, industry concentrations, and profits.
    [ssquf] The effects of the actions on U.S. technology, including in 
terms of U.S. technological leadership and U.S. technological 
development.
    [ssquf] The effects of the actions on U.S. workers, including with 
respect to employment and wages.
    [ssquf] The effects of the actions on U.S. small businesses.
    [ssquf] The effects of the actions on U.S. supply chain resilience.
    [ssquf] The effects of the actions on the goals of U.S. critical 
supply chains outlined in Executive Order 14017 and in subsequent 
reports and findings.
    [ssquf] Whether the actions have resulted in higher additional 
duties on inputs used for additional manufacturing in the United States 
than the additional duties on particular downstream product(s) or 
finished good(s) incorporating those inputs.
    In order to facilitate preparation of comments prior to the 
November 15 opening of the web portal, USTR intends to post a copy of 
questions for the docket by November 1, 2022. The questions will be 
posted at https://comments.USTR.gov.
    In the course of the review, USTR will evaluate whether to provide 
additional opportunities for public comment through additional written 
comments or through public hearings. Any further opportunities for 
public comment will be addressed in subsequent notices.

C. Submissions Instructions

    To be assured of consideration in this stage of the four-year 
review, interested parties should submit comments following the 
November 15, 2022 opening of the public docket on the portal, and by no 
later than January 17, 2023. This includes interested parties that 
previously provided responses in the prior stage of the review 
regarding continuation.
    By submitting a comment, the commenter certifies that the 
information provided is complete and correct to the best of their 
knowledge.
    USTR's portal will allow for the submission of Business 
Confidential Information (BCI). Information regarding the procedures 
for submitting BCI will be specified on the portal.
    USTR will post submissions in the docket for public inspection, 
except business confidential information. You can view submissions on 
USTR's web portal at https://comments.USTR.gov through docket number 
USTR-2022-0014.

Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2022-22469 Filed 10-14-22; 8:45 am]
BILLING CODE 3390-F3-P