BEIJING MUST CHANGE ITS WAYS OR US TRADE WAR LOOKS INEVITABLE
As China and the United States appear to be on a collision course towards a trade war, Beijing’s dogged pursuit of intellectual property may come back to bite it. Under section 301 of the US Trade Act of 1974, US President Donald Trump has the authority to take “all appropriate action” if a foreign country’s trading practices are deemed to be unfair or restrictive to US Commerce.
Last week, the Office of the US Trade Representative (USTR) announced US$60 billion of new tariffs on Chinese imports. By targeting China’s technology sector and areas such as AI, telecoms and autonomous vehicles – priority sectors in China’s “Made in China 2025” master plan – Washington is hitting Beijing where it hurts.
