Commerce Secretary Wilbur Ross Discusses Trade With China, Intellectual Property Theft and Reciprocity…

Commerce Secretary Wilbur Ross appears with Bloomberg Inc. to discuss the ongoing U.S. trade initiatives and the need for immediate and urgent trade reciprocity.

Within the discussion Secretary Ross talks about the current targeted tariff proposal, and why intellectual property theft by Chinese state-run companies poses a clear threat to U.S. economic growth and national security interests.

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From the Office of the U.S.T.R. – Washington, DC – Today President Trump announced his decisions on the actions the Administration will take in response to China’s unfair trade practices covered in the USTR Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. U.S. Trade Representative Robert Lighthizer initiated the investigation in August 2017 at the direction of President Trump.

The President has instructed that the appropriate response to China’s harmful acts, policies and practices should include three separate actions.

  1. Tariffs – The President has instructed the Trade Representative to publish a proposed list of products and any tariff increases within 15 days of today’s announcement.  After a period of notice and comment, the Trade Representative will publish a final list of products and tariff increases.
  2. WTO dispute – The President has instructed the Trade Representative to pursue dispute settlement in the World Trade Organization (WTO) to address China’s discriminatory technology licensing practices.
  3. Investment restrictions – The President has directed the Secretary of the Treasury to address concerns about investment in the United States directed or facilitated by China in industries or technologies deemed important to the United States.

“President Trump has made it clear we must insist on fair and reciprocal trade with China and strictly enforce our laws against unfair trade.  This requires taking effective action to confront China over its state-led efforts to force, strong-arm, and even steal U.S. technology and intellectual property,” said Ambassador Lighthizer.  “Years of talking about these problems with China has not worked.  The United States is committed to using all available tools to respond to China’s unfair, market-distorting behavior.  China’s unprecedented and unfair trade practices are a serious challenge not just to the United States, but to our allies and partners around the world.”

The Chinese government’s technology transfer and intellectual property policies are part of China’s stated intention of seizing economic leadership in advanced technology as set forth in its industrial plans, such as “Made in China 2025.”

Section 301 is a key enforcement tool that allows the United States to address a wide variety of unfair acts, policies, and practices of U.S. trading partners.  The investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation addresses four categories of acts, policies, and practices of the Government of China that unfairly result in the transfer of technologies and intellectual property from U.S. companies to China.  These policies harm U.S. businesses and workers and threaten the long-term competitiveness of the United States.

USTR staff, with the assistance of dozens of experts from across the Administration, prepared a comprehensive report containing detailed findings.  The report is available on the USTR website.

The report supports the following conclusions:

  1. China uses foreign ownership restrictions, including joint venture requirements, equity limitations, and other investment restrictions, to require or pressure technology transfer from U.S. companies to Chinese entities.  China also uses administrative review and licensing procedures to require or pressure technology transfer, which, inter alia, undermines the value of U.S. investments and technology and weakens the global competitiveness of U.S. firms.
  2. China imposes substantial restrictions on, and intervenes in, U.S. firms’ investments and activities, including through restrictions on technology licensing terms.  These restrictions deprive U.S. technology owners of the ability to bargain and set market-based terms for technology transfer.  As a result, U.S. companies seeking to license technologies must do so on terms that unfairly favor Chinese recipients.
  3. China directs and facilitates the systematic investment in, and acquisition of, U.S. companies and assets by Chinese companies to obtain cutting-edge technologies and intellectual property and to generate large-scale technology transfer in industries deemed important by Chinese government industrial plans.
  4. China conducts and supports unauthorized intrusions into, and theft from, the computer networks of U.S. companies. These actions provide the Chinese government with unauthorized access to intellectual property, trade secrets, or confidential business information, including technical data, negotiating positions, and sensitive and proprietary internal business communications, and they also support China’s strategic development goals, including its science and technology advancement, military modernization, and economic development.

The European Union Chamber of Commerce in China likewise concluded in a report entitled “China Manufacturing 2025: Putting Industrial Policy Ahead of Market Forces” that there has been an “unprecedented wave of outbound investments” in recent years from China into firms in industries of relevance to Made in China 2025, and many of these investments have been in areas where foreign business is unable to make equivalent investments in China.

The USTR report also notes, “As the global economy has increased its dependence on information systems in recent years, cyber theft became one of China’s preferred methods of collecting commercial information because of its logistical advantages and plausible deniability.” The report goes on to conclude that “based on available information on China’s cyber intrusions, experts have concluded that China’s cyber intrusions and cyber theft align with its industrial policy goals.”

The full report can be viewed here.

A fact sheet can be viewed here.

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This entry was posted in ASEAN, Big Government, Big Stupid Government, China, Decepticons, Deep State, Dem Hypocrisy, Economy, Legislation, media bias, NAFTA, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

50 Responses to Commerce Secretary Wilbur Ross Discusses Trade With China, Intellectual Property Theft and Reciprocity…

  1. motreehouse says:

    Wilburine Rules!

    Liked by 9 people

  2. Pam says:

    Liked by 10 people

  3. missilemom says:

    Wilbur Ross trended on Twitter for several hours today….yes he did. Do most people on Twitter know or understand Ross? No. The continued manipulation of social media is getting desperate.
    Comments of course were all negative.

    Liked by 6 people

  4. Marygrace Powers says:

    China is ruthless on trade.

    Well, now the USA has a ruthless team in place/PLAY BALL.

    Liked by 17 people

    • fleporeblog says:

      China 🇨🇳 maybe ruthless on trade but our President and his Killers have been waiting their entire life for the opportunity that they have in front of them today. They will literally destroy the Chinese Economy and send their people back into the rice fields.

      Our Wilburine was absolutely clear on how easily China 🇨🇳 can shrink our deficit without causing any of their garbage to stop being imported into our country. The Chinese are not dumb. If the USA 🇺🇸 goes about bringing half of the 60K factories that closed back to life, China 🇨🇳 will lose access to our country. That is their greatest fear. How do you offset that from happening, you purchase all your fuel from us. You purchase all your soy and other agricultural products from us. 1.3 billion people need to be feed and kept warm.

      This would allow those two sectors to takeoff and more importantly restrict the number of factories that would be built.

      Our President and his Killers hold all the cards in the world! China 🇨🇳 has a choice in front of them. Hopefully they choose wisely!

      Liked by 9 people

  5. Everywhereguy says:

    Wall Street: “OMG, we’re going to treat them no better than they treat us on trade??? IT’S A OUTRAGE, I TELL YA, A OUTRAGE!!! WHAT IS TRUMP *THINKING*?????”

    Liked by 8 people

  6. Wengair says:

    I love it when he says, “That’s not a well-founded assumption” when asked about exemptions to steel tariffs being weak. In everyday American language, he said, “That’s just ignorant”.

    I LOVE what these guys are doing, and it makes me want to learn more about this geeky subject.

    Liked by 9 people

  7. Y/O, says:

    You throwing out FIRE & FURY today Sundance. As a Treeper said above: What a great time to be an American.

    Liked by 6 people

  8. Sylvia Avery says:

    Wilbur Ross makes me swoon. He’s old enough to be my dad, but I don’t care. He’s just so smart.

    He was on Lou Dobbs tonight, also. I liked how Wilbur spoke of Mr. and Mrs. America basically getting taken to the cleaners as our wealth was transferred overseas.

    Liked by 9 people

  9. RH says:

    $60 Billion tariffs is peanuts! @POTUS needs to put $500 Billion to $1 Trillion annual tariffs on China to stop China.

    Like

  10. Fromseatoshiningsea says:

    God, please bless and protect these noble men and women who are guided by the same unalienable rights that inspired our founding fathers. Please protect them so they may restore the righteous glory that once inhabited this magnificent tribute to the greatest gifts you can bestow upon your humble servants. May your love and wisdom guide them, your strength and power protect them.

    Thank you Mr. Sundance.

    Liked by 11 people

  11. Larry Bucar says:

    That was the biggest FU by Wilbur R. since America’s deplorables voted PDJT as the big bruisn’ 45, hahahahah

    Liked by 5 people

  12. stats_guy says:

    Again, the Repukes…I heard that one of them admonished Trump Not to get into a trade war. And then another said don’t blow the tax deal with a trade war.

    If these guys had been in charge in 80s we would have surrendered to the Ruskies. All they want is their money. You can not have a world power with a bunch of corrupt hack pols just looking for a bribe or graft

    Liked by 7 people

  13. Paco Loco says:

    Wilbur is a national treasure! The Trump team is just getting started on leveling the playing field so US manufactured and agricultural goods can compete with the Chinese. The Dems are going to become very mute when the GDP hits 4% and there’s full employment. Their only political strategy is to continue the smear campaign that’s been ongoing since the election. They have no economic or fiscal policy except to tax and spend and that’s a loser. The challenge for POTUS is to put an actual budget in place and reign in the out of control spending in Congress.

    Liked by 7 people

  14. wheatietoo says:

    We love you, Secretary Ross!

    Thank you for hanging tough and fighting for us.
    You’re doing great!
    Don’t listen to the nay-sayers and the whiners, we’ve got your back.

    Liked by 6 people

    • olderwiser21 says:

      I would like to nominate Secretary Ross for the next “Sexiest Man Alive” cover. Power, honesty, intelligence and humor in one small package! What could be better than our own Wilburine? I still want to be friends with him and hang out!

      Liked by 2 people

  15. itsarickthing says:

    China can’t feed itself and they wanna fight. IT’S ABOUT FRICKIN’ TIME!

    Liked by 2 people

  16. Rynn69 says:

    Excellent article, Sundance. I was watching the hearing with Lighthiser and he made reference several times to the onerous process of the WTO dispute and how it needs reform. It would be interesting to know more about this process.

    Liked by 3 people

  17. Foolsgold says:

    This is greatest thing I’ve heard a president say to another country since “tear down that wall”!

    Liked by 3 people

  18. essential liberties says:

    Hopefully on of the industries where Chinese investment gets curtailed is agriculture. Too much farmland getting purchased by foreign interests…

    Liked by 1 person

  19. Bugsdaddy says:

    What I don’t get is how all the “Educated Idiots” sputtering about a “Trade War”, don’t realize that YES, it is a trade war, and China declared war on the US of A 30 years ago…….

    Like

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