Biden launches Section 301 investigation into China's semiconductor industry

US President Biden has asked the Office of the United States Trade Representative to launch a Section 301 investigation, mainly targeting China's dominant position in the semiconductor field and its impact on the US economy. Biden said that the investigation will cover semiconductors and downstream products in key areas such as defense, automobiles, medical equipment, aerospace, telecommunications, power generation and power grids, aiming to protect American workers and businesses. In addition, the United States plans to increase the tariff rate on Chinese chips from the current 25% to 50% starting in 2025.