Inquiry into intellectual property rules defies Beijing’s warning it could hurt ties
US Trade Representative Robert Lighthizer has began a formal investigation into whether China’s intellectual property policies are “unreasonable or discriminatory” following an order from President Donald Trump that Beijing has warned will hurt bilateral trade ties.
“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, ” Lighthizer said in an official announcement on Friday.
“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.”
Trump launches US probe into ‘unlawful’ China trade practices, raising spectre of trade war
Trump directed Lighthizer to initiate the investigation earlier this week, following up on pledges to negotiate a bilateral trade and investment relationship with China that makes it easier for US companies to tap into the world’s second-largest economy.
Trump has often accused China of trade and investment practices that have led to the loss of American jobs, and is facing increasing pressure to show progress in the goals he set during his winning presidential campaign.
Six months into his presidency, Trump has so far failed to push through legislation meant to reform health care and the US tax code.
US companies from Zippo, a maker of pocket lighters, to General Motors and Lockheed Martin have faced challenges related to counterfeiting and unauthorised technology transfers in China, which has prompted some industry groups and Washington think tanks to support Trump’s investigation.
