In recent weeks, friction between the White House and China has escalated in intellectual property. The question is, will it result in a global trade war.
In mid-August, President Trump asked US Trade Representative Robert Lighthizer to open an investigation into China’s intellectual property (IP) practices. “This is just the beginning,” Trump told reporters.
In turn, Lighthizer, a veteran Reagan administration trade hawk, seized the notorious Section 301 of the Trade Act of 1974, which in the 1980s was used against the rise of Japan.
The investigation could lead to steep tariffs on Chinese goods – but it could also trigger a global trade war.
About the Author
Dr. Dan Steinbock is Guest Fellow of Shanghai Institutes for International Studies (SIIS), see http://en.siis.org.cn/. The commentary is part of his SIIS project “China in the Era of Economic Uncertainty and Geopolitical Risk”. For his global advisory activities and other affiliations in the US and Europe, see http://www.differencegroup.net/