[One Degree]

China warns Trump of trade war if he orders tech theft probe
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Last Updated Aug 14, 2017 4:59 AM EDT

BEIJING -- A Chinese state newspaper warned Monday that President Trump "could trigger a trade war" if he goes ahead with plans to launch an investigation of whether China is stealing U.S. technology.

In a commentary by a researcher at a Commerce Ministry think tank, the China Daily said Mr. Trump's possible decision to launch an investigation, which an official says he will announce Monday, could "intensify tensions," especially over intellectual property, and "poison the overall China-US relationship."

The official told reporters Saturday the president would order his trade office to look into whether to launch an investigation under Section 301 of the Trade Act of 1974 of possible Chinese theft of U.S. technology and intellectual property.

Mr. Trump is expected to sign an executive order Monday asking his trade office to consider the probe. In the midst of a 17-day vacation, he plans to leave his New Jersey golf club and return to Washington to sign the order.

There is no deadline for deciding if any investigation is necessary. Such an investigation easily could last a year.

It would come despite the president seeking China's help in the ongoing showdown with North Korea.

China's Foreign Ministry said Monday the issues of U.S. trade and North Korea aren't connected and there's no future in a trade war between China and the United States, the Reuters news agency reports. Ministry spokeswoman Hua Chunying made the comment at a regular press briefing.

A decision to use the Trade Act to rebalance trade with China "could trigger a trade war," the state newspaper commentary said under the name of researcher Mei Xinyu of the ministry's International Trade and Economic Cooperation Institute.

"And the inquiry the U.S. administration has ordered into China's trade policies, if carried out, could intensify tensions, especially on intellectual property rights."

The commentary gave no indication of how Beijing might respond but Chinese law gives regulators broad discretion over what foreign companies can do in China.

If an investigation begins, Washington could seek remedies either through the World Trade Organization or outside of it.

Previous U.S. actions directed at China under the 1974 law had little effect, said the China Daily. It noted China has grown to become the biggest exporter and has the world's largest foreign exchange reserves.

"The use of Section 301 by the U.S. will not have much impact on China's progress toward stronger economic development and a better future," said the newspaper.

http://www.cbsnews.com/news/china-warns ... eft-probe/

I am interested in more insight as to why China appears threatened by this? Or why Trump feels it is a necessary action? I have some idea on the background, but it appears to be an issue that requires more diverse opinions than I am likely to get from US media. Your thoughts?

[Igor Antunov]

It's just a probe, seems like a political stunt. We won't know what they're seeking to prove until its done and dusted.

[quetzalcoatl]

Irrelevant move.

China has a vital and vibrant economy because of internal factors, such as competent and flexible leadership, science education, rational not dogmatic economic policies, etc. Stealing tech is marginal. Igor is right to call this probe a stunt. China followed the same playbook as Japan, South Korea, Taiwan, etc.: aggressive export policies, protectionism, and disregard of IP rules. This works for a developing economy, not so for a mature one. The US itself pioneered this technique in the nineteenth century.

China is posturing in its response to Trump. Both sides are playing to internal audiences. A trade war is about as likely as clean beautiful coal. Nothing will come of this, as Trump's trade policies are as ineffectual as his legislative efforts.