By: Joseph Spraragen
On January 8, 2025, the U.S. Court of Appeals for the Federal Circuit (CAFC) heard oral argument in the lead China Section 301 case (HMTX Industries LLC v. U.S.). The three-judge panel assigned to the case consists of two experienced CAFC judges and one judge sitting by designation from the U.S. District Court for the Eastern District of Texas.
The judges asked the parties to address issues that included statutory interpretation, the scope of what would be a permissible modification to the original 301 tariff action (List 1 and List 2), and whether the retaliatory duties imposed by China were related to the conduct that was the subject of the Section 301 investigation, i.e., China’s practices with respect to forced transfer of technology.
We anticipate that the CAFC will issue its decision within the next few months. Whatever the CAFC decides, there will likely be further proceedings, either a request for a rehearing before the CAFC, or a writ of certiorari to the Supreme Court. Accordingly, a final decision in this case is likely to take another year or more.
We will continue to provide periodic updates as the case continues. In the meantime, should you have any questions, please do not hesitate to contact one of our attorneys.
