Trump action on China trade likely to have broad support


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The sanctions that President Donald Trump is considering slapping on China for stealing the intellectual property of US companies should gain widespread support, enabling it to rebuild a power base in Congress that is subject to the recent battle over Health care.

The administration should soon announce actions against China not to protect the industrial and commercial secrets of US companies, a move that has the support of the Democrats.

Even commercial experts, who have opposed a lot of Trump 's business actions so far and challenged his data, agree that something must be done about China. But they worry about the consequences, especially the retaliation from Beijing.

American companies have long complained of Chinese rules that require them to share intellectual property, resulting in a reversal of information with little impediment or enforcement.

"China is home to many counterfeit activities, including commercial theft, online piracy and counterfeiting, and fished and counterfeit exports to markets all over the world," said US Trade Representative In its annual report on Intellectual Property Issues published in April.

Moreover, "China imposes requirements for US companies to develop their IP in China or transfer their intellectual property to Chinese entities as a condition of access to the Chinese market"

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But companies like Apple and Google are struggling to challenge Beijing for fear of losing access to the world's second largest economy.

During the presidential campaign, Trump promised to hit China with a tariff of 45 percent on all imported goods to cope with the trade deficit with the country, which totaled $ 309 billion last year .

But since taking office, the administration has restored fierce rhetoric and tried for cooperation, including last month 's trade negotiations, entitled Global Economic Dialogue between the United States and China (CED).

But with little to show of these efforts, and no help from China in North Korea's nuclear weapons program, Trump launched unilateral actions to combat unfair trade in aluminum, steel and Now IP.

"If Trump felt that he would get good cooperation on North Korea, he would not progress," AFP told Gary Clyde Hufbauer of the Peterson Institute for the " International economy, trade pressure against China.

A US trade law known as Article 301 gives US presidents ample latitude to take reprisals against any trade policy of another country deemed unfair.

Trade experts say that retaliation could come in the form of targeted tariffs against specific companies, such as state-owned Chinese companies that think benefit from US intellectual property.

Or the White House could impose wider sanctions, such as tariffs on imports or restrictions on Chinese investments in the United States, where companies are not subject to restrictions.



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