China Slams Trump’s “Trade War” Announcement, Says It Is A Distraction From “Domestic Turmoil” In The U.S.

Monday, August 14, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Aug 14, 2017

Today at 3pm, President Trump will sign a memo addressing “China’s laws, policies, practices, and actions related to intellectual property, innovation, and technology” effectively launching the first shot in what many predict will blossom into an all-out trade war with China. As discussed over the weekend, administration officials said Saturday that memo will direct U.S. Trade Representative Robert Lighthizer to consider investigating China over its IP policies, especially the practice of forcing U.S. companies operating in China to transfer technological know-how.

Predictably, China is not happy. In an editorial published in the China Daily, the government lashed out at Trump, warning him that by “politicizing” trade, he risks “exacerbating” the US’s “economic woes,” and “poisoning” the relationship between the world’s two largest economies.

“In an editorial, the official China Daily said it was critical the Trump administration doesn’t make a rash decision it will regret.

“Given Trump’s transactional approach to foreign affairs, it is impossible to look at the matter without taking into account his increasing disappointment at what he deems as China’s failure to bring into line the Democratic People’s Republic of Korea,” the English-language paper said.

‘But instead of advancing the United States’ interests, politicizing trade will only acerbate the country’s economic woes, and poison the overall China-U.S. relationship.’”

For those who’ve been too busy enjoying their August vacation to keep track of all the international conflicts flaring up around the globe, Trump is preparing to order US Trade Representative Robert Lighthizer to launch an investigation under section 301 of the Trade Act of 1974. The law, which was commonly used during the Reagan administration, has fallen into disuse since the launch of the WTO. It has more recently been used as a tool by trade unions. The investigation should pave the way for the US to take potentially aggressive retaliatory actions against China, such as imposing tariffs on Chinese imports or rescinding licenses for Chinese companies wanting to do business in the US.

The Rest…HERE

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