The U.S. International Trade Commission voted on Jan. 21 to launch an investigation into Chinese company Lixin Precision, which is seen as the first action against China by the Biden administration since it took office on Jan. 20.
According to the ITC website, the investigation is based on a complaint filed by Amphenol Corp. on Dec. 18, 2020, alleging that Lixin Precision violated Section 337, which is a border measure against unfair imports, especially in cases where the imported goods infringe on intellectual property rights. It is governed by Section 1337 of the current U.S. Tariff Act and is referred to as Section 337 because it first appeared in Section 337 of the U.S. Tariff Act of 1930 and has been amended several times since then. Amphenol asked the Commission to issue a limited injunction prohibiting the importation of the products in question.
The Commission is investigating (Case No. (337-TA-1241)) Certain Electrical Connectors and Cages, Components Thereof, and Products Containing the Same, and the companies under investigation include
Luxshare Precision Industry Co., Ltd.
Dongguan Luxshare Precision (Dongguan Luxshare Precision Industry Co., Ltd)
Luxshare Precision Limited (HK) of Fotan (Luxshare Precision Hong Kong Inc.)
Luxshare-ICT Inc (Luxshare Industries California registered company)
The website also states that the Trade Commission will decide on an end date for the investigation within 45 days.
Luxshare-ICT is a Chinese electronics company founded in 2004, and its founder, Chun Lai, was originally an employee of Foxconn, and Luxshare-ICT mainly produces connectivity devices for computers, telecommunications, and consumer electronics. In 2017, Apple’s CEO Cook even visited Lixin’s factory in person. The market even once rumored that Apple deliberately supported Lixin, triggering rumors of stealing Hon Hai’s market.
Investigation Process
After the U.S. Section 337 investigation process is filed, evidence will be collected, hearings will be held, and finally the results will be submitted to the President, who must decide within 60 days, and if the President does not veto or answer, the parties will have the opportunity to appeal. 337 investigation procedures involve the President, the International Trade Commission, Customs, federal courts and other agencies.
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