Donald Trump went head to head with China from the very day he was sworn in as president of the United States of America, which depending on your opinion did not work out that well, and in my opinion ended with Mr. Trump backing down leaving him with egg on his face.
The countries could be set to battle it out again as the US is set to review China’s intellectual property policies.
At a time when tensions are already pretty high why would they do this, well it is estimated that intellectual property theft is estimated to cost the US up to $600bn a year
The US has formally launched an investigation into China’s policies regarding intellectual property.
The top US trade official, Robert Lighthizer, said his office had “determined that these critical issues merit a thorough investigation”.
The move was expected after President Donald Trump asked Mr Lighthizer to review China’s practices.
China has voiced “serious concern” over the inquiry, which could result in US trade sanctions.
The US has been meaning to look into this problem for some time, said Gary Hufbauer, from the Peterson Institute for International Economics in Washington.
This investigation is running parrallel with the US investigation into reports that the Chinese government is using investment into US companies to gain access to new technology.
Officials will gather comments and hold a hearing in October as part of the so-called Section 301 investigation.
Mr Hufbauer said it’s a “foregone conclusion” that the US will find evidence of unfair practices, but it’s not clear how the Trump administration will proceed after that.
On Tuesday, China’s commerce ministry warned: “If the US side takes actions that impair the mutual trade relations, disregarding the facts and disrespecting multilateral trade rules, China will not sit idle.”
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