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The US just fired the first shot in a trade war with China

Discussion in 'The Americas' started by Agent_47, Aug 19, 2017.

  1. Agent_47

    Agent_47 Admin - Blog IDF NewBie

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    The US has initiated an investigation n into China's theft of US intellectual property (IP) using Section 301 US Trade Act of 1974.

    That may sound like a bunch of jargon, but what it boils down to is that the US just fired the first shot in a trade war with China.

    "On Monday, President Trump instructed me to look into Chinese laws, policies, and practices which may be harming American intellectual property rights, innovation, or technology development," said Ambassador Robert Lighthizer ina statement on the US Trade Representative website.

    "After consulting with stakeholders and other government agencies, I have determined that these critical issues merit a thorough investigation. I notified the President that today I am beginning an investigation under Section 301 of the Trade Act of 1974."

    China sees the use of Section 301 as an act of aggression because it allows the president of the United States to act against the Chinese economy without consulting the World Trade Organization. China has been a member of the organization since 2001. The use of Section 301 fell out of fashion around the same time. US leaders didn't see the point of using it anymore because the WTO's framework had more legitimacy, and even allies were complaining about its use.

    China has been warning the Trump administration against bypassing the WTO since January. Earlier this week Chinese state media was alive with condemnation for even the thought of activating section 301.

    "We urge the US side to respect the facts and act prudently. If US ignores the facts and disrespects multilateral trade rules, thus jeopardizing the two nations' trading ties, China will not sit on its hands and will take all appropriate measures to protect its own legitimate rights," said a spokesperson for China's Ministry of Commerce on Tuesday.

    http://www.businessinsider.in/The-U...trade-war-with-China/articleshow/60127181.cms
     
  2. BlackOpsIndia

    BlackOpsIndia Lieutenant FULL MEMBER

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    This investigation may actually end up benefiting China as there seems to be no intent in US to complete the investigation fearing Chinese backlash, bad thing is since this will be ongoing for long US will not take any other step. A better and serious step will be to ban some Chinese products or raise the tariff, something result oriented not word oriented.
     
    Angel Eyes and Blackjay like this.
  3. Golden_Rule

    Golden_Rule Lieutenant FULL MEMBER

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    of theft of US intellectual property (IP) .... (completing the spokesperson's incomplete statement above)
     

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