In an attempt to cease the widespread violation of U.S intellectual property rights, U.S president Donald Trump will be announcing a series of trade enforcement. Multiple outlets have revealed that the Trump administration trade policy is expected to mirror the restrictions imposed by China. Recent Trump foreign trade policy mainly outlines the strategy to deal with the matters of foreign policy and security threats. The current US trade policy focuses on objectives to open new export opportunities for workers, farmers, ranchers, and businessmen based in America.
With the growing concerns regarding the violations of U.S. intellectual properties rights and developments by China, the US president is slated to impose nearly US$ 50 Bn worth of tariffs on various products imported from China. Amidst various impositions, the president is also expected to announce restrictions on the Chinese investments in the U.S. to mirror the restrictions faced US-based investors in China.
Deviating from the president’s trade policy agenda in 2017, the US trade policy is more focused towards deglobalization and protectionism due to ongoing violations. Besides restriction on the imports from China, the president is also expected to announce tighter visa policies for the China-based students. China has reportedly engaged in various practices that are concerning for the Trump administration and raises questions regarding the commitment to the market-oriented practices that were offered for many years.
Years of broken promises by China has compelled the president to take tough and disruptive trade actions against China. Some of the violations by China include accessing trade secrets and sensitive commercial information of the companies based in the U.S. A record of US$ 375 Bn deficit in the goods trade with China serves as an evidence that the businesses based in the U.S were treated unfairly.
According to the Trump administration, the US companies are facing the pressure to offer technology to their partners in China gain required licenses and permits by the government. The administration further claims that the Chinese hackers have penetrated the websites and networks of companies to track their confidential business plans. United States Steel Corporation is one of the leading steel company that has faced such infringements by the Chinese hackers. Also, investors in China have been encouraged by the government to acquire the U.S. intellectual properties by purchasing the companies based in the Silicon Valley.
Companies based in the U.S. claim that the China-based companies frequently register the U.S. trademarks as their own in China and were later held out for ransom from the real owners. With the ongoing trade violations faced by the U.S. companies, the U.S president is compelled to take the respective trade enforcements on China.