The Trump administration’s probe into China’s intellectual-property practices threatens to spark a trade war between the world’s two biggest economies, according to an official representing Chinese industry.
The Trump administration’s probe into China’s intellectual-property practices threatens to spark a trade war between the world’s two biggest economies, according to an official representing Chinese industry.
“We are quite confused and greatly concerned about the investigation,” said Chen Zhou of the China Chamber of International Commerce. Any decision by the administration to impose unilateral penalties on China “may trigger a trade war,” Chen said Tuesday at a hearing held by the U. S. Trade Representative’s office.
The hearing was part of USTR’s investigation into China’s policies and practices related to technology transfer, IP and innovation to determine if the behavior is discriminatory or restricts U. S. commerce. The probe is being conducted under seldom-used Section 301 of the 1974 Trade Act, which gives the president broad authority to impose tariffs on foreign goods.
The investigation has created tension with China just as the U. S. asks Beijing to play a bigger role in containing North Korea’s nuclear ambitions.
