Global Geopolitical Series: Trump likely to slap hefty fines on China over intellectual property theft

U.S. President Donald Trump is likely to take his trade war with China to the next level by slapping a hefty fine over China’s intellectual property theft. In an interview with Reuters, Trump and his economic adviser Gary Cohn said China had forced U.S. companies to transfer their intellectual property to China as a cost of doing business there. They added that the United States is considering a big fine as a part of a probe into China’s alleged theft of intellectual properties of the U.S. companies. Trump reportedly said during the interview, “ We have a very big intellectual property potential fine going, which is going to come out soon… We’re talking about big damages. We’re talking about numbers that you haven’t even thought about.”

Using a 1974 law, the Trump administration has already authorized an investigation into China’s alleged intellectual property theft. The law also allows the President to impose retaliatory tariffs on Chinese goods or other trade sanctions until China changes its policy. The Trump administration has also initiated several other investigations related to trade with China and imposed several anti-dumping and countervailing duties.

He, however, added that he wants the United States to have a good relation with China but for that China needs to treat the United States fairly.

During the interview, Trump expressed concerns neither over trade war nor over China’s selling of treasuries. When asked if these moves would trigger a trade war, he said, “ I don’t think so, I hope not. But if there is, there is”. When asked about the Bloomberg report earlier last month suggesting China might trim U.S. treasury holdings, Trump said that he is not concerned that such a move would hurt the United States.