US Fires First Salvo of Upcoming Trade War with China

• US Fires First Salvo of Upcoming Trade War with China
  by PETER KORZUN, https://www.strategic-culture.org/
  While the North Korean nuclear program and its missile tests capture the world public attention, another war is about to spark. On August 14, US President Trump launched the first salvo by authorizing an inquiry into Beijing’s alleged theft of intellectual property under Section 301 of the Trade Act of 1974. This is the first direct trade measure by the administration against China.
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  Washington believes that American companies operating in the Celestial Empire are pressured into sharing intellectual property if they want to have access to China’s economy. American businesses are often forced to create joint ventures with Chinese partners, turning over valuable technology assets. «We will stand up to any country that unlawfully forces American companies to transfer their valuable technology as a condition of market access. We will combat the counterfeiting and piracy that destroys American jobs», Trump said.
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  During his election campaign, President Donald Trump threatened to impose 35% to 45% tariffs on Chinese imports to force China into renegotiating its trade balance with the United States. US Trade Representative Robert Lighthizer will have a year to look into whether to launch a formal investigation of China’s trade policies on intellectual property, which the White House and US industry lobby groups say are harming US businesses and jobs. Trump administration officials have estimated that theft of intellectual property by China could be as high as $600 billion.
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  The bilateral US trade deficit with China approached US$350 billion in 2016, and Trump has repeatedly blamed Chinese imports for gutting employment in US sectors such as steel. «We will engage in a thorough investigation and, if needed, take action to preserve the future of US industry», Lighthizer said.
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