USTR to examine China’s intellectual property violations

The U.S. Trade Representative (USTR) announced last Friday to investigate China’s intellectual property violations and improper trade practices according to the executive order signed by President Donald Trump on last Monday, heralding a U.S.-China trade war.

 

U.S. Trade Representative Robert Lighthizer said in a statement, “After consulting with stakeholders and other government agencies, I have determined that these critical issues merit a thorough investigation.” President Trump signed the executive order to instruct USTR to investigate China’s violations of intellectual property rights, unfair technology transfer, and other improper practices under Section 301 of the Trade Act.

 

American media predicted that the probe would take for a year. If the result found unfair trade practices of China, the U.S. may impose high tariffs or demand an import quota to the country.

 

It was considered as an effort by the Trump administration to press China to implement prompt and strong sanctions on North Korea by swiftly carrying out the U.S. president’s order.

 

"The investigation of USTR, which is initiated according to Section 301 of the Trade Act of 1974, is sort of trade retaliation," said the People’s Daily, the official newspaper of the Chinese Communist Party. "The US will suffer the consequences."

 

Eun-A Cho achim@donga.com