Trump Calls for Probe on China's Intellectual Property System

Donald Trump
Donald Trump (photo: Slate)
By Mei ManuelAugust 15th, 2017

On Monday, US President Donald Trump authorized a trade probe to be done to investigate into China's alleged intellectual property theft as part of the administration's direct trade measure against China. However, experts believe this would not cause immediate change.

Trump took time off from his 17-day vacation in New Jersey to sign the memo despite the tensions growing between the US and China over North Korea's nuclear ambitions and current plans.

Experts beleive that the trade investigations would further escalate tensions between China and the US, especially as the US is still trying its best to get Beijing to become more active in stopping North Korea's activities.

The investigations regarding the alleged intellectual property theft will not start until US Trade Representative Robert Lighthizer sees the necessity to conduct the investigations. According to the White House and US industry lobby groups, China's trade policies on intellectual property and the presence of fake commodities from China is harming US businesses and jobs. Trump's team also estimated that the theft committed by China on intellectual property totals to $600 billion.

For experts on Chinese trade policy, the one year lead time for the Trade Representative's study can given the Chinese government time to polish the issue with the US without having to show a weaker stance on the issue.

On Monday, China's state newspaper - China Daily - released an editorial against the probe as they believe it will "poison" relations and warned Trump on making a rash decision that it could regret once it started.

This is not the first time China's intellectual property policies were questioned by the US as past administrations had sought China's action to improve its IP practices under Section 301 of the Trade Act of 1974. Although rarely used, it allows the US president to impose tariffs and other trade restrictions on countries to protect US industries. China, for decades, has forced many foreign companies to turn over their technology to Chinese joint venture partners and has yet to make a clear stance against intellectual property theft coming from China.

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