The proposed measures will be implemented in retaliation for China’s alleged technology theft.
Today, the Trump administration will release an outline of proposed measures against China in retaliation to its alleged technology theft.
Following an extensive investigation into Chinese trade practices, the White House has accused Chinese state-owned firms of purchasing US technology for military research purposes. In response, Trump’s plan includes more than $30 billion worth of tariffs which would likely receive input from US companies before their implementation.
Additionally, the proposal aims to hamper Chinese industry from acquiring US technology in the first place. Although it is unclear exactly how, one pathway involves mirroring China’s restrictions on US firms by requiring that companies form joint ventures before doing business.
Having distanced himself from allies with the imposition of steel tariffs, Trump must pursue unilateral action. Furthermore, in bypassing the WTO and imposing these restrictions, the US would set a dangerous precedent and open the door for Chinese retaliation. Expect today’s proposal to paint a clearer picture of the future trade relationship between US and China.