In fairness the Chinese have been outright jacking intellectual property for a couple of decades now. Indeed many people believe that the Chinese see such technology as an easy win. Something that is basically handed to them.
What we are starting to see is the unwinding of the economic “mutually assured destruction” regime that has existed between the US and China for 20 years. They buy our debt, we buy their goods. This had a stabilizing effect. Without this stabilizing effect things could get much more interesting beyond just the world of international trade.
“Tomorrow the President will announce the actions he has decided to take based on USTR’s 301 investigation into China’s state-led, market-distorting efforts to force, pressure, and steal U.S. technologies and intellectual property,” principal deputy press secretary Raj Shah said in a statement Wednesday.
He refers to Section 301, the authority by which the U.S. can take action against countries for violations of trade agreements or unfair practices.
The measures to be unveiled will not include restrictions on Chinese investment in the U.S. or student visas, sources told CNBC.
President Donald Trump will be briefed again in two weeks to consider more actions based on the effects of the first phase, said the sources, who declined to be named. Trump worries the measures could hit American universities too hard, according to the sources.