Trumps move to punish Chinese firms is complicating and isolating for the U.S. government
Latest developments indicate that China and U.S. are heading for a time of trouble in the business sector. Today, President Trump will sign a memo into action that is designed to initiate an investigation into the conduct of Chinese firms that the U.S. government says, have violated American intellectual property rights, based on an outdated 1974 U.S. trade act. This is taking place at a time when tensions are already running high between U.S. and North Korea, an ally of China. This act, under which the Trump administration is planning to muscle China with, is part of a system under the World Trade Organization umbrella. As far as the White House is concerned, the WTO has already played the globalization game to the advantage of Chinese firms and has allowed the American manufacturing sector to decline as the result. So, with this move, the Trump administration can undermine global peace by antagonizing a strong partner like China, which it views as an effective partner and mediator.
Now, there is no doubt that China has violated some important U.S. and Eurozone IP regulations, but the ways in which U.S. has decided to tackle the issue undermines both credibility and competence of partnership between the two western partners. Especially when old trade laws have become obsolete and old partners have worked better ways to compromise with one another. Therefore, the unilateral steps taken by the Trump administration can be a signal for a U.S. maneuver to tackle the North Korean issue through turning it into a bargaining chip that can be used to muscle China with. This is hard to see, of course, but from the way U.S. officials are going about it, in that they are not including the Europeans, reveals that President Trump is trying to hit two birds with one stone. As he gets ready to turn North Korea into a weakness for the Chinese, he is also making the Chinese President, Xi Jinping, come to the table with a weaker hand and then to force him on a compromise both on U.S. and Chinese trade relations as well as North Korea. The problem here is that Trump doesn’t have any sweets to offer the Chinese by activating the 1974 trade act, not to mention he will surely aggravate the Chinese into actions that are sure to turn the table against Trump. All of such friction can very well put the U.S. in a bad position, considering the fact that as the Trump administration undermines the Europeans and WTO, he automatically begins to sails these uncharted waters alone.
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