The United States on Friday formally launched a trade investigation into China’s intellectual property practices and forced transfer of American technology, which President Donald Trump had called for this week.
In a statement of US Trade Representative Robert Lighthizer, He said, “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,” “After consulting with stakeholders and other government agencies, I have determined that these critical issues merit a thorough investigation.”
Foreign companies have long complained about Beijing’s failure to protect know-how and patents, and in some cases forcing firms to share information with domestic partners as the price for doing business in the massive Chinese market.
“We will safeguard the copyrights, patents, trademarks, trade secrets and other intellectual property that is so vital to our security and to our prosperity,” he said.
US is launching the investigation under Section 301 of US trade law, which addresses intellectual property.
Beijing this week fired back, warning that “everybody will lose” in the event of a trade war between the world’s two largest economies.
The United States is China’s second-largest trading partner after the European Union and had a deficit of nearly $310 billion last year.