Trump Administration Questions China’s Trade Practices

China’s trade policy is going to be under investigation by the Trump Administration, growing worries in the US

The White House is on the verge of opening a broad investigation into China’s trade policy, according to those who are aware of the Trump administration’s plans. However, this action grows worries in the US regarding the Chinese government-led effort to become a global leader in microchips, electric cars and other highly important technologies of the future.

The move is sign of a shift by the administration away from its initial focus on better cooperation between Washington and Beijing, mostly because the officials have become frustrated by China’s unwillingness to confront North Korea over its both nuclear and ballistic missile programs.

The investigation will concentrate on Chinese violations of American intellectual property. This information comes from three people who have detailed knowledge of the administration’s plans. Because the plans were not yet public, the three persons shared this information on the condition of anonymity.

What is clear is that any sort of move by the Trump administration to punish China on the topic of its trade policy would raise tensions between the world’s two largest trade partners.

China represents a lucrative market for American car makers, while also for companies like Apple. Moreover, China’s export sector is a great contributor to its economy growth.

On the other hand, China’s ambitions in the industrial field, plus the frustration going on among American companies when it comes to doing business there have become harder for the US to ignore.

China’s policy, named Made in China 2025, aims to become a leading manufacturer by 2025 when it comes to driverless cars, medical devices, artificial intelligence, robotics, and other technologies. This target has caught the attention of the Trump administration; that’s because the policy aims to be a global leader in 10 different fields, with the help of infusions of state money and the protection from American competitors.