Trump orders probe of China's intellectual property rules

14 Août, 2017, 00:09 | Author: Claudine Rigal
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Trump suggested that if China helped rein in North Korea, which is reliant on Beijing's economic and security aid, he could lighten up on his attacks on Chinese trade practices, which were a mainstay of his election campaign. They spoke on condition of anonymity as they were not authorized to discuss the private call.

The officials said that matter, and the trade issue, are not linked.

U.S. businesses are often forced to create joint ventures with a Chinese partner and turn over valuable technology assets, a practice the White House claims stymies USA economic growth.The latest review will be conducted by the United States trade representative under the Trade Act of 1974.

While there's no evidence that the Trump administration is willing to engage constructively with the WTO, Bown recommends the United States and China resolving their trade disputes through the Geneva-based global trade body.

The measure would seek to address what the US business community has described as flagrant trade violations by China, which employs a variety of rules and practices to wall its market off from foreign competition and pressure USA companies to part with valuable product designs and trade secrets - or to steal them outright.

Trump wants government officials to look at Chinese practices that force American companies to share their intellectual property in order to gain access to the world's second largest economy.

The American companies "should not be forced or coerced to turn over the fruits of their labor", one official said.

China's foreign and commerce ministries did not immediately respond to faxed requests for comment Sunday.

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

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"I think China can do a lot more", Trump told reporters Thursday.

However, Bown was anxious that the Trump administration "hasn't really yet identified a strategy to engage China on the long-term systemic sort of talks" as they seemed much focused on "getting quick wins".

"President Trump and President Xi agreed North Korea must stop its provocative and escalatory behavior", the statement said. Xi urged both sides not to do anything that would aggravate tensions. In April, he said he wouldn't label China a currency manipulator, in return for help in dealing with North Korea.

Trump planned to launch the trade investigation more than a week ago, but he delayed the move in favor of securing China's support for expanded United Nations sanctions against North Korea, the senior administration official said.

Sun said there were two kinds of Taiwanese products that could be hurt by possible trade sanctions, the most obvious being goods assembled in China before they are shipped to the U.S. He said it would be premature to speculate on actions that could eventually be taken against China, and added that the issue could be resolved through "negotiated agreement".

Trump's threat to investigate China's intellectual property and trade practices is valid, but his administration may not be up to the delicate task of carrying out a new China probe without sparking a damaging trade war, US business lobbyists said last week.

Trump, however, also informed Xi about the pending probe into China's trade practices, according to two USA officials with knowledge of the conversation.

The results of three separate investigations into trade deficits and the national security threats posed by imports of steel and aluminum, initially expected by the end of June, have yet to appear.

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