Montreal Gazette

Trump calls for review of IP policy with China as trade links sour

- ANDREW MAYEDA

U.S. President Donald Trump asked his top trade official to consider investigat­ing China over how it handles intellectu­al property, adding to the list of trade irritants between the world’s two biggest economies as they work to contain North Korea.

Trump signed an executive memorandum on Monday directing U.S. Trade Representa­tive Robert Lighthizer to consider investigat­ing China over its IP policies, especially the practice of forcing U.S. companies operating in China to transfer technologi­cal know-how.

“It’s my duty and responsibi­lity to protect the American workers’ technology and industry from unfair and abusive actions,” Trump said at the White House.

“We will stand up to any country that unlawfully forces American companies to transfer their valuable technology as a condition of market access. We will combat the counterfei­ting and piracy that destroys American jobs.”

If China is found to be flouting the rules on U.S. intellectu­al property, the administra­tion has a range of options, including imposing import tariffs, according to administra­tion officials, who spoke to reporters Saturday on the condition of anonymity.

If USTR moves forward, the investigat­ion could take as long as a year.

“The United States has for many years been facing a very serious problem. China industrial policies and other practices reportedly have forced the transfer of vital U.S. technology to Chinese companies,” Lighthizer said in a statement, adding that the review will be one of USTR’s highest priorities.

He said USTR will do a “thorough” investigat­ion and take action if needed “to preserve the future of U.S. industry.”

However, the top Democrat in the Senate said the president hasn’t yet matched his tough talk on China with action.

“To make an announceme­nt that they’re going to decide whether to have an investigat­ion on China’s well-documented theft of our intellectu­al property is another signal to China that it is OK to keep stealing,” Senate Minority Leader Chuck Schumer said in a statement.

Chinese state media on Monday criticized Trump’s plans for an IP probe, saying the action will do more harm than good, whether it’s a new policy approach or negotiatin­g tactic.

The move comes amid growing tension over the threat of North Korea using nuclear weapons, and less than two weeks after the U.S. received China’s help in the United Nations Security Council to impose tougher economic sanctions on Pyongyang.

Chinese President Xi Jinping moved to calm nerves last week, telling the U.S. president during a phone call that all sides should maintain restraint and avoid inflammato­ry comments.

While the White House said the leaders reaffirmed their commitment to rid the Korean Peninsula of nuclear weapons, Trump has previously criticized China for not reining in North Korea, and threatened trade measures if Xi fails to act.

Trump’s announceme­nt further complicate­s the already taut U.S.China relationsh­ip, which took a frosty turn last month when officials from both nations couldn’t agree on a joint statement over economic issues after high-level talks in Washington.

Still, Trump’s actions stop short of what some analysts had been expecting him to do on intellectu­al property. Rather than launching straight into a probe, USTR will first consider whether to begin an investigat­ion under Section 301 of the 1974 Trade Act.

That law allows the president to impose tariffs on foreign products in response to unfair or discrimina­tory restrictio­ns on American commerce.

The 301 provision has practicall­y fallen into disuse since the mid-1990s after the creation of the World Trade Organizati­on.

In a USTR report to lawmakers that was released in July, the administra­tion accused China of engaging in “widespread infringing activity, including trade secret theft, rampant online piracy and counterfei­ting, and high levels of physical pirated and counterfei­t exports to markets around the globe.”

 ?? THE ASSOCIATED PRESS/FILES ?? President Donald Trump, left, is asking the U.S. Trade Representa­tive to consider investigat­ing China for the theft of U.S. technology and intellectu­al property. He is taking the step even as he seeks help from China’s President Xi Jinping, right, with...
THE ASSOCIATED PRESS/FILES President Donald Trump, left, is asking the U.S. Trade Representa­tive to consider investigat­ing China for the theft of U.S. technology and intellectu­al property. He is taking the step even as he seeks help from China’s President Xi Jinping, right, with...

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