On August 18th, US Trade Representative Robert Wright Heze issued a statement saying that he would officially launch a trade investigation against China in the areas of technology transfer, intellectual property and innovation in accordance with Article 301 of the US Trade Act of 1974.
The United States ignores the rules of the World Trade Organization, launches trade investigations against China in accordance with domestic laws, and sends out destructive signals to foreign countries, which has aroused great concern from foreign media. International public opinion, including the US industry, is generally worried about this.
"The trade investigation of China is based on the protection of intellectual property rights and the protection of trade"
Section 301 gives the President of the United States the power to unilaterally impose tariffs or other trade restrictions, emphasizing the protection of domestic industries from the “irrational or unfair trade practices†of other countries. US President Trump signed an administrative memorandum on the 14th, authorizing trade representative Wright Heze to examine the so-called "China trade behavior", including China's practice in the field of intellectual property such as technology transfer.
In the 1980s and 1990s, the United States frequently launched a "301 investigation" on trading partners. Since the establishment of the World Trade Organization in 1995, the "Article 301" has gradually been abandoned.
The editorial of "Lianhe Zaobao" published on August 17th "Trade disputes should not be reduced to political tools" pointed out that international trade should adhere to the principle of freedom and fairness and should not be linked to issues such as geopolitics and human rights, and should not be reduced to one. The state is fighting against political tools in another country.
"Lianhe Zaobao" pointed out in another editorial on the 21st that "there is no winner in the trade war between China and the United States", Trump is determined to conduct trade investigations against China, in the name of protecting intellectual property rights, and to protect trade.
Earlier this month, the US "Quartz" financial website pointed out that Trump is only using the US-China trade as a bargaining chip for both sides, but this approach is likely to lead to a trade war.
In the article "Economic Populism is Still in the White House", Reuters believes that although the Trump senior adviser who advocates trade protectionism and the White House chief strategist Bannon have left, other people who oppose free trade will continue to influence the US government. The threat of economic populism still exists.
The British "Financial Times" pointed out that the use of "Article 301" is very provocative, which is more like the use of big trade tools to fight against China. The way Americans behave actually combines the roles of judges, jurors, and law enforcement officers to deal with the issues it identifies. Using such a tough weapon may bring the risk of a full-scale trade war.
"The trade war is not only not conducive to the settlement of disputes, but will also bring harm to both the United States and China."
Today, with the deepening of Sino-US interest, the two sides have formed a close cooperation pattern of “you have me, I have youâ€, and the “301 investigation†such outdated unilateralism is not beneficial to both parties, so American companies may Damaged.
The US "Business Insider" website reported on the 18th with specific data. With the continuous advancement of globalization, the economic exchanges between the United States and China are closer than ever. The United States launched a trade war, which is not only beneficial to the settlement of trade disputes. And it will bring harm to both the United States and China. The article said that from 2001 to 2016, the growth rate of US exports to China was much higher than that of imports to China. In 2016, China became the largest export market for US soybeans and passenger airliners, as well as the second largest export market for US cotton, automobiles and integrated circuits. "The trade war between the United States and China will not only hurt Chinese manufacturers, but also harm upstream and downstream suppliers as well as US retailers. The United States may have to accept higher import prices than ever before. The US companies in China may also be harmed as a result."
Germany's "World News" issued a statement on the 14th that if the "301 investigation" eventually led to the United States to impose unilateral sanctions against China, it would not be beneficial to the United States itself. The article quoted an analysis by international financial experts as saying that "trade protection measures will only rejuvenate a few industries such as steel in the United States, but will not help offset the trade deficit." The article believes that if the sanctions are initiated, such as tightening or even interrupting the import of rare earths from China, the entire computer industry in the United States will be in trouble.
"Washington people's practice of restricting Chinese imports will make the United States more painful." Russia News Agency said on the 17th that once the import tariffs imposed on Chinese goods are raised, the White House punishes American companies that invest in China. If China adopts countermeasures to restrict US imports of goods, it will be difficult for US manufacturers to sell agricultural products, airplanes, automobiles and other commodities in China. “It is much easier for China to find new suppliers than to find new consumers in the United States.â€
The Russian news agency quoted Dmitry Abuzhalov, director of the Russian Strategic Exchange Center, as saying that the Chinese economy has been tightly integrated with the world economy including the United States. It is impossible to destroy the Chinese economy on the one hand and protect the US economy and consumers on the other. If a trade war breaks out, American companies may lose China, the world's fastest-growing large-scale consumer market. Unlike the already over-saturated US market, China's consumer market is expanding and its purchasing power is growing. There is no winner in the US-China trade war.
The Lianhe Zaobao pointed out that in the era of globalization, China and the United States have become more and more dependent on economic and trade. The unilateral trade sanctions are ultimately affected by consumers and enterprises in China and the United States. China and the United States should avoid both losses. Moreover, trade is only one of the topics of Sino-US relations. It is the right choice for the two sides to resolve differences and seek greater opportunities for cooperation through various means.
"There is no winner in the trade war, and all parties must follow the rules of the World Trade Organization."
Singapore's "Straits Times" pointed out on the 20th that the "301 investigation" initiated by the United States almost means that the Sino-US trade war has begun, and the Sino-US trade war is not good for anyone.
The German news TV channel website quoted the chairman of the German Chamber of Commerce and Industry, Shi Weizhe, warning of US trade protectionism measures that if there is a trade dispute between the world's two largest economies, it will have a negative impact on German companies. Shi Weizhe stressed that there is no winner in the trade war, and all parties must follow the rules of the World Trade Organization.
Japan’s "Yomiuri Shimbun" said that the use of "Article 301" is a "double-edged sword" for the United States. If the United States raises tariffs unilaterally and is suspected of violating the provisions of the World Trade Organization, not only China but also other countries will oppose it. The goods imported from China by the United States are mainly computers, smart phones, textiles and other items that are closely related to daily life. If US sanctions lead to the rise of US domestic commodity prices, the lives of American people will also be seriously affected. The newspaper quoted the Minister of Economy, Trade and Industry as saying that the US-China economic relationship has a huge impact on the world economy, and the Japanese side will pay close attention to this situation.
Germany's "World News" pointed out that the International Monetary Fund had previously warned about trade protection behaviors. Although trade protectionism measures can bring about temporary improvements in the internal economy and are welcomed by voters, it will ultimately endanger the global economy and trade protectionism. The person will eventually be the loser.
"In today's era, many commodities have not been produced by a single country or a single enterprise. The goods imported from China by the United States are likely to have added value from South Korea or Japan, or even the United States itself." The US Fortune magazine website pointed out that global commodities Production and value chains have long been tied together intricately, and the United States has forcibly provoked trade wars, and many countries on the chain are affected. Once the interests of some large multinational corporations in China are damaged, they will certainly stand up against the US government's move.
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