Trump Orders Trade Probe Into Chinese Theft of American IP

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U.S. President Donald Trump, flanked by U.S. Representative Darrell Issa (R-CA) (L), Treasury Secretary Steven Mnuchin (3rd R), U.S. Trade Representative Robert Lighthizer (2nd R) and Commerce Secretary Wilbur Ross (R), finishes signing a memorandum directing the U.S. Trade Representative to complete a review of trade issues with China at the White House in Washington.

On Monday President Trump ordered an investigation into Chinese theft of American intellectual property

(VERO BEACH, FL) These actions were laid out in a memorandum for U.S. Trade Representative (USTR) Robert Lighthizer which the President signed Monday afternoon.

"We're going to be fulfilling another campaign promise by taking firm steps to ensure that we protect the intellectual property of American companies and, very importantly, of American workers," President Trump said at the signing.

"For too long, this wealth has been drained from our country while Washington has done nothing," President Trump said. "They have never done anything about it. But Washington will turn a blind eye no longer."

Enclosed in the memo is a directive for the USTR office to informally probe China's policies, practices, and actions specifically regarding the forced transfer of American technology and theft of U.S. intellectual property (IP) by Beijing’s central government.

Under this new directive, the stage is set for a formal 301 investigation, laid out in Section 301 of the 1974 Trade Act.

“If a formal investigation is launched, it could take several years and potentially result in the imposition of economic sanctions on China,” Washington Free Beacon senior editor Bill Gertz wrote regarding the memo. “The president's action on predatory Chinese trade practices follows the failure by Beijing to rein in its communist ally North Korea.”

In his announcement President Trump honed his rhetoric on the issue of stolen American IP, noting that the “counterfeiting and piracy” have destroyed American jobs.

"We will stand up to any country that unlawfully forces American companies to transfer their valuable technology as a condition of market access," President Trump said. "We will combat the counterfeiting and piracy that destroys American jobs, we will enforce the rules of fair and reciprocal trade that form the foundation of responsible commerce, and we will protect forgotten Americans who have been left behind by a global trade system that has failed to look—and I mean look—out for their interests. They have not been looking out at all."