The United State government has officially opened an inquiry into China’s policies in relation to intellectual property.
“We are convinced that these critical matters merit a careful inquiry”. Mr Robert Lighthizer, A United State trade official, said. The action was already anticipated following the US President, Donald Trump requesting that Mr Lighthizer investigates China’s business exercise.
China has called the review a “serious allegation”, which might eventually lead to a US trade embargo.
The Peterson Institute for International Economics in Washington personnel Mr Gary Hufbauer, said: “The United State has been worried about these issues for quite a while now”.
The annual charge to the America economy from fake goods, unauthorized software and stealing of trade secrets has been approximated to about $600bn (£470bn).
Last week Friday the United State said it’s making plans to review reports and hackings related to the Chinese authority driving investment into United State firm’s top US business with a move to get access to latest technology.
The US said, on Friday they targeted to look into hacking and reports , that the Chinese government is leading investment into US companies, in key industries as a way to gain access to new technology.
Report Due In October
The agent will collect all reports and a court session will be scheduled in October as part of the alleged Section 301 inquiry. Mr Hufbauer said it’s a “foregone conclusion” that the United State will look for proof of unlawful business exercise, although it’s not certain how the Trump government will pursue the investigation.
It could deliver a complaint to W.T.O (World Trade Organization), or choose to take an independent legal action, which is quicker.
Punishment could be directed against individual firms, or a larger scale of other companies, he said, which could alter China’s response.
Tuesday, China’s commerce ministry advised: “If the America government decides to take actions that will harm the bilateral trade connection, neglecting the truth and tarnishing multilateral trade regulation, China will not accept any unfair judgment”.