Huawei ZTE HTC electronic imaging equipment by the United States 337 investigation

At the China-U.S. Urban Economic Cooperation and Investment Conference held in Nanjing last Saturday, Chinese and US companies signed a bilateral investment agreement worth US$3.4 billion covering new energy sources in the manufacturing sector, a significant part of which was invested by China in the United States. This was interpreted by the outside world as responding to trade frictions and the two sides are seeking cooperation to boost the economy.

However, this good wish soon poured into a cold water. When the United States actively promoted investment in China, the U.S. International Trade Commission announced on the 25th that it initiated "337 investigations" on electronic imaging equipment produced by companies in mainland China and Taiwan to determine whether there was patent infringement. On the 20th, the U.S. Trade Commission also announced that it had launched a "337 investigation" on products such as synthetic rubber resins produced by many companies in China.

The investigation involved Huawei and ZTE, the US International Trade Commission issued a statement on the 25th, saying that the products involved are mainly devices with imaging functions such as mobile phones and tablet computers. The survey involved a total of eight companies, including Huawei Technologies Co., Ltd., ZTE Corporation in China and Hongda International Electronics Co., Ltd. in Taiwan.

The statement said that flashpoint technology company in New Hampshire, United States, filed a complaint with the US International Trade Commission on May 23 this year, accusing the US import and sales of the above-mentioned products involved in the US market infringing on the company’s patents, requesting the initiation of “337 investigation” and publishing Exclusion orders and import prohibitions.

The case needs to be produced within one year. The so-called “337 investigation” in the United States was named after the “Section 337 of the United States Tariff Act of 1930” and undergoes several major revisions. According to this provision, the US International Trade Commission has the power to investigate complaints concerning patent and registered trademark infringements, and it also conducts investigations involving misappropriation of trade secrets, product packaging infringement, imitation, and false advertising.

According to relevant procedures, after the US International Trade Commission initiated the "337 investigation," the agency must determine the target time for the final award within 45 days and complete the investigation as soon as possible. Usually the case needs to make a ruling within one year. If the company involved is found guilty of violating Article 337, the U.S. International Trade Commission will issue exclusion orders and prohibit imports of related products, which means that the products involved will completely lose their eligibility for entry into the U.S. market.

Since the beginning of this year, the United States has repeatedly launched "double counter" investigations and "337 investigations" on Chinese products, and protectionism has risen significantly. Except for the protection of individual industries from sanctions, almost all the products under investigation have been subject to trade sanctions. The Chinese Ministry of Commerce has repeatedly stated that it hopes that the U.S. government will abide by its opposition to trade protectionism, jointly safeguard a free, open and fair international trade environment, and properly handle trade frictions in a more rational manner.