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Safeguards

What is Section 421 (China Safeguard) of the Trade Act of 1974?

Under this law, the Commission determines whether articles from China are being imported into the United States in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products.

If the Commission makes an affirmative determination, it proposes a remedy. The Commission sends its report to the President and the U.S. Trade Representative. The President makes the final remedy decision

This type of investigation is also known as a "China Safeguard Investigation."