Trump directs to examine China’s potential IP rights violation

U.S. President Donald Trump signed Monday (local time) a Presidential Memorandum to direct to examine whether China has violated U.S. intellectual property rights. The United States Trade Representative will start an investigation in the near term. If a violation is confirmed, the Trump administration may start a massive economic retaliation as per the Section 301 of the Trade Act.

After signing the memorandum, President Trump called the inquiry is “a very big move.” He repeatedly said, “It’s just the beginning.” The Washington Post said that it is not only a warning to follow-up measures after the examination but also an indication that an additional economic sanction might follow.

“China will never tolerate an action that does not respect the principle of multilateralism and undermines the trade relationship between the two countries (the U.S. and China.) We will protect China’s legal rights through all possible measures," Chinese Commerce Ministry spokesman Gao Feng said on Tuesday in a statement. “The Section 301 of the U.S. Trade Act has a unilateral nature as it is to oppose other country. We express grave concerns over the examination.”

Jeong-Hun Park sunshade@donga.com · Wan-Jun Yun zeitung@donga.com