Mercoledì, 24 Aprile, 2019

Trump May Roll Out Probe Into China and Intellectual Property Theft

JIM WATSON  AFP  Getty Images JIM WATSON AFP Getty Images
Parmenio Sano | 14 Agosto, 2017, 21:56

US President Donald Trump's administration said he would sign an administrative memorandum today ordering the Office of the US Trade Representative to investigate China's trade practices, including alleged intellectual property theft. These limitations forced many foreign companies into joint ventures with Chinese entities, many of them state-owned, effectively a form of technology transfer.

Such investigations normally take one year.

Kristian Rouz - As the global crisis over North Korea's nuclear ambition unravels, part of the Trump administration is targeting Pyongyang's largest trade partner, mainland China.

But here was a perception that it had been delayed because Trump was hoping China would do more on North Korea, and he had even suggested as much.

The trade investigation could strain relations between the US and China as the two countries wrestle with the unpredictable situation over North Korea. Xi urged both sides not to do anything that would aggravate tensions.

There would be no change in China's policy towards the Korean peninsula because of the new appointment, she added.

If an investigation begins, Washington could seek remedies either through the World Trade Organization or outside of it. "The presidents also reiterated their mutual commitment to denuclearization of the Korean Peninsula".

An administration official has insisted diplomacy over North Korea and the potential trade probe were "totally unrelated", saying the trade action was not a pressure tactic.

Textiles were North Korea's second largest export in 2016 after coal and other minerals.


Chinese textile firms based in the border town of Dandong are taking advantage of cheaper labour next door in North Korea, spurred by the fact the latest round of United Nations sanctions do not cover textile exports.

When asked about the delay during the Saturday call, the officials did not address the question directly.

"I don't believe we are heading towards a period of great conflict". According to the Commission on the Theft of American Intellectual Property, China is the leading country in the world when it comes to violating intellectual property laws.

"China also funds and facilitates the acquisition of United States firms that possess advanced technologies", the officials said. "Innovation in the USA economy should not be put at risk by policies that force companies to turn over their proprietary technologies and intellectual property".

The action will allow the Trump administration to impose trade restrictions on China, which is accused of stealing intellectual property from the United States.

The administration probably is eager to make progress on trade, one of Trump's biggest campaign issues, after a recent series of legislative setbacks, trade experts said.

President Trump plans to get tougher on trade with China.

The loss of USA manufacture jobs, as pointed out by Edward Alden, a senior fellow at the Council on Foreign Relations, in his new book "Failure to Adjust", was more about automation that increases productivity of remaining factories in the country, which meant fewer workers working in factories. "And I think China will do a lot more". However, the USA pledged in the mid-1990s to settle disputes through the World Trade Organization dispute settlement system rather than by taking unilateral action.

The warning came from Chinese newspaper, China Daily. "Numerous concerns about IP-related antitrust enforcement have been focused on China", the FTC statement said.

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