In rare bipartisan display, U.S. Democrats back Trump on China trade probe

[webfact]

In rare bipartisan display, U.S. Democrats back Trump on China trade probe

By Ginger Gibson and David Lawder

 

President Donald Trump departs after his remarks to the American Legion Boys Nation and Auxiliary Girls Nation in the Rose Garden at the White House, July 26, 2017. REUTERS/Jonathan Ernst

 

WASHINGTON (Reuters) - Three top Democratic senators, in a rare show of bipartisanship, on Wednesday urged U.S. President Donald Trump to stand up to China as he prepares to launch an inquiry into Beijing's intellectual property and trade practices in coming days.

 

Senate Democratic leader Chuck Schumer pressed the Republican president to skip the investigation and go straight to trade action against China.

 

"We should certainly go after them," said Schumer in a statement. Senators Ron Wyden of Oregon and Sherrod Brown of Ohio also urged Trump to rein in China.

 

Tensions between Washington and Beijing have escalated in recent months as Trump has pressed China to cut steel production to ease global oversupply and rein in North Korea's missile programme.

 

Sources familiar with the current discussions said Trump was expected to issue a presidential memorandum in coming days, citing Chinese theft of intellectual property as a problem. The European Union, Japan, Germany and Canada have all expressed concern over China's behaviour on intellectual property theft.

 

U.S. Trade Representative Robert Lighthizer would then initiate an investigation under the Trade Act of 1974's Section 301, which allows the president to unilaterally impose tariffs or other trade restrictions to protect U.S. industries, the sources said.

 

It is unclear whether such a probe would result in trade sanctions against China, which Beijing would almost certainly challenge before the World Trade Organisation.

 

U.S. Section 301 investigations have not led to trade sanctions since the WTO was launched in 1995. In the 1980s, Section 301 tariffs were levied against Japanese motorcycles, steel and other products.

 

"This could merely be leverage for bilateral negotiations," James Bacchus, a former WTO chief judge and USTR official, said of a China intellectual property probe.

 

Some trade lawyers said that WTO does not have jurisdiction over investment rules such as China's requirements that foreign companies transfer technology to their joint venture partners, allowing sanctions to proceed outside the WTO's dispute settlement system.

 

But Bacchus argued the United States has an obligation to turn first to the Geneva-based institution to resolve trade disputes, adding: "There is an obligation in WTO to enforce intellectual property rights that is not fully explored."

 

Lighthizer and Trump's Commerce Secretary, Wilbur Ross, have complained the WTO is slow to resolve disputes and biased against the United States.

 

The threat comes at a time when Trump has become increasingly frustrated with the level of support from Beijing to pressure Pyongyang to give up its nuclear and missile programme.

 

Trump has said in the past that China would get better treatment on trade with the United States if it acted more forcefully against Pyongyang. Beijing has said its influence on North Korea is limited.

 

China counters that trade between the two nations benefits both sides, and that Beijing is willing to improve trade ties.

 

A senior Chinese official said on Monday there was no link between North Korea's nuclear programme and China-U.S. trade.

 

Wyden, the top Democrat on the Senate Finance Committee, wrote to Lighthizer urging action to stop China from pressuring U.S. tech companies into giving up intellectual property rights.

 

Wyden's state of Oregon is home to several companies that could make a case regarding intellectual property rights and China, including Nike Inc <NKE.N> and FLIR Systems Inc <FLIR.O>.

 

(Addiitonal reporting by Steve Holland, Lesley Wroughton and David Lawder; Editing by Kevin Drawbaugh and Lisa Shumaker)

 

-- © Copyright Reuters 2017-08-03

[Rancid]

Why wouldn't they after all, China is part of their new axis of evil. Maybe better lock in some permanent sanctions against them as well...

[tonray]

About time for another Recession ....sanctions on China are a non starter..you would hurt American businesses more than China. This is for 2018 elections..."see how we are protecting your jobs by investigating those bad Chinese ? "

[retarius]

This could get pretty ugly pretty quickly. Linking cooperation NK to trade is a dangerous precedent. The US can look forward to little support for either China or Russia at the UN. No more agreements calling for 'serious consequences' for nations that the US wants regime change. The US regime is looking pretty shaky on foreign policy reflecting the inward looking vision of Trump, but he's even pissing off the nations that usually support the US unconditionally like France and Germany....and I don't think Japan will be well pleased if NK nukes them as retaliation for a US strike on Pyongyang. 

[Srikcir]

12 hours ago, webfact said:

U.S. President Donald Trump to stand up to China as he prepares to launch an inquiry into Beijing's intellectual property and trade practices in coming days

Then we'll hear about more Chinese trademarks issued to D. and I. Trump, and Trump's inquiry comes to a sudden end.

[craigt3365]

11 hours ago, retarius said:

This could get pretty ugly pretty quickly. Linking cooperation NK to trade is a dangerous precedent. The US can look forward to little support for either China or Russia at the UN. No more agreements calling for 'serious consequences' for nations that the US wants regime change. The US regime is looking pretty shaky on foreign policy reflecting the inward looking vision of Trump, but he's even pissing off the nations that usually support the US unconditionally like France and Germany....and I don't think Japan will be well pleased if NK nukes them as retaliation for a US strike on Pyongyang. 

If the US strikes Pyongyang, which is less than a 1% chance, NK won't be able to nuke Japan.  As far as Russia and China goes, they rarely help with matters like this.  China didn't help back in 1993 when NK first started exiting the NPT.  Great partners.  NOT.