Trump administration is considering its first major trade action against China as President Trump became disappointed with the Chinese regime to reign on North Korea’s missile program to assist the United States. The US government might launch a probe into a Chinese intellectual property system, where foreign companies are required to transfer technologies to local subsidiaries and partners. The move is set to address one of the major concerns of companies across the world especially from those from the United States and Europe, who do business in China.

According to the people familiar with the ongoing serious discussions within the administration, the Trump team is planning to use a 1974 statute that has not been used since the creation of the World Trade Organization (WTO). The statute allows the US President to impose duties on foreign products from countries that use unfair trade practices.

As the Trump administration’s patience runs thin, the move might come as early as this week, however, people within the Trump team are reportedly divided on the topic and on the scale of action that needs to be taken.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest