San Francisco Chronicle

Trump targets China on alleged tech theft

- By Ana Swanson

President Trump signed an executive memorandum Monday afternoon that will likely trigger an investigat­ion into China’s suspected theft of U.S. intellectu­al property, a measure that could eventually result in a wide range of penalties as the administra­tion seeks a new way to deal with what it calls Chinese violations of the rules of internatio­nal trade.

“It’s a very big move,” Trump said, as he signed the memo surrounded by trade advisers and company executives. “This is just the beginning, I want to tell you that. This is just the beginning.”

Officials said the memorandum would direct their top trade negotiator, U.S. Trade Representa­tive Robert Lighthizer, to determine whether to open an investigat­ion. The inquiry would give the president broad authority to retaliate if it finds that China is compromisi­ng U.S. intellectu­al property.

But senior White House officials said in a call with reporters Saturday that the investigat­ion could take up to a year to conclude and that it was premature to say whether it would result in tariffs against China, a negotiated settlement or some other kind of outcome.

Despite the uncertaint­ies, company executives and politician­s widely greeted the investigat­ion as an early effort to deal with an issue that has persistent­ly troubled U.S. high technology industries of all kinds — with companies disputing treatment in fields ranging from nuclear power to automobile­s to telecom.

A White House official said the measure had the support both of Silicon Valley and areas that had been damaged by trade under past administra­tions, like the Rust Belt.

In an emailed response early Sunday morning, the Chinese government denied the allegation­s and implied that it might challenge any U.S. action in the World Trade Organizati­on.

Ana Swanson is a Washington Post writer.

 ?? VCG via Getty Images 2012 ?? Apple devices are among the technology products and intellectu­al property that could be the subject of a U.S. investigat­ion into China’s trade practices.
VCG via Getty Images 2012 Apple devices are among the technology products and intellectu­al property that could be the subject of a U.S. investigat­ion into China’s trade practices.

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