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China, Cyber Exploitation

Initiation of U.S. Investigation of China for Conducting or Supporting Unauthorized Intrusions Into U.S. Commercial Computer Networks

From the Office of the U.S. Trade Representative:

USTR Announces Initiation of Section 301 Investigation of China

Washington, DC – Today, U.S Trade Representative Robert Lighthizer formally initiated an investigation of China under Section 301 of the Trade Act of 1974. The investigation will seek to determine whether 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.

The Notice of Initiation of Investigation alleges:

[T]he investigation will consider whether the Chinese government is conducting or supporting unauthorized intrusions into U.S. commercial computer networks or cyber-enabled theft of intellectual property, trade secrets, or confidential business information, and whether this conduct harms U.S. companies or provides competitive advantages to Chinese companies or commercial sectors.

From their press release:

 

Details on the investigation, including the schedule for public comments and a public hearing, are set out in a notice posted on the USTR website and to be published in the Federal Register.

Background:

Section 301 of the Trade Act of 1974, as amended, gives the U.S. Trade Representative broad authority to respond to a foreign country’s unfair trade practices. If USTR makes an affirmative determination of actionable conduct, it has the authority to take all appropriate and feasible action to obtain the elimination of the act, policy, or practice, subject to the direction of the President, if any. The statute includes authorization to take any actions that are within the President’s power with respect to trade in goods or services, or any other area of pertinent relations with the foreign country.

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