US strikes again as China trade war rages on

The US has announced it will impose additional tariffs on $200 billion worth of Chinese imports as a trade war between the countries rages on.

According to the US Trade Representative (USTR) Robert Lighthizer, the latest tariffs (amounting to 10%) have been imposed to prevent China from violating the IP rights of US businesses.

Lighthizer added that China has pursued “abusive trading practices with regard to IP and innovation”.

On Friday, July 6, the US implemented tariffs of 25% on approximately $35 billion worth of Chinese imports. The tariffs will eventually cover up to $50 billion worth of Chinese imports, specifically products related to China’s “industrial policy and forced technology transfer practices”.

In response, China imposed tariffs on $34 billion worth of US goods, with the potential of another $16 billion worth of goods being subject to the tariffs. According to the USTR, China “did this without any international legal basis or justification.”

US President Donald Trump then hit back against China and announced plans to impose tariffs of 10% on an additional $200 billion of Chinese imports.

In August 2017, Trump instructed Lighthizer to investigate China’s trading practices.

The eight-month investigation concluded that China had been “engaging in industrial policy which has resulted in the transfer and theft of IP and technology to the detriment of our economy and the future of our workers and businesses”.

The report also found that the Chinese government “sponsors the outright theft of US technology for commercial benefit”, added Lighthizer.

Tensions between the US and China have intensified this year—but in May, the countries agreed that they would not impose any more tariffs on each another.

However, that same month, Trump announced the plans to impose tariffs of 25% on $50 billion worth of Chinese imports.

Source: https://www.worldipreview.com/news/us-strikes-again-as-china-trade-war-rages-on-16309#.W0XlCGfHMS0.linkedin


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