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President Set To Retaliate On China For 'Unfair Trade Practices'

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Trump Set To Retaliate To China's "Unfair Trade Practices" | Zero Hedge

Donald Trump is close to a decision on how to respond to what he considers China's unfair trade practices, a senior Trump administration official said on Tuesday.

According to reports in the New York Times, Wall Street Journal and Associated Press, the Trump administration is planning to use an obscure 1970s law to launch a "broad-based" investigation into whether China's trade-related intellectual property policies constitute "unfair trade practices.

 

 The US inquiry could become an obstacle for one of the Communist Party's top economic priorities: the Made in China 2025 initiative, while calls for China to become a "global leader" in ten industries with the help of huge infusions of state money.

"The last Section 301 case was in 2010 and was initiated by a labor union, the United Steel Workers, instead of by the government, as the Trump administration is preparing to do. The case focused on Chinese business practices in the solar panel and wind turbine industries, and the Chinese government later promised to limit some of these practices.

But China's solar and wind turbine industries have gone on to dominate their global industries, after receiving multibillion-dollar loans from China's state-controlled banking system despite major defaults on earlier loans."

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