The United States will impose a 25 per cent tariff on $50 billion of goods imported from China containing industrially significant technology, including those related to the “Made in China 2025” program by reducing its $375 billion deficit in 2017.
Under Section 301 of the Trade Act of 1974, the United States will impose a 25 per cent tariff on $50 billion of goods imported from China containing industrially significant technology.
To protect its national security, the United States will implement specific investment restrictions and enhanced export controls for Chinese entities related to the acquisition of industrially significant technology. The proposed investment restrictions and enhanced export controls will be announced by June 30, 2018, and they will be implemented shortly thereafter.
In addition, the United States will continue efforts to protect domestic technology and intellectual property, stop noneconomic transfers of industrially significant technology and intellectual property to China, and enhance access to the Chinese market.
Likewise, the United States will request that China remove all of its many trade barriers, including non-monetary trade barriers, which make it both difficult and unfair to do business there. The United States will request that tariffs and taxes between the two countries be reciprocal in nature and value. Discussions with China will continue on these topics, and the United States looks forward to resolving long-standing structural issues and expanding our exports by eliminating China’s severe import restrictions.
On March 22, 2018, the President signed a memorandum announcing that the United States would take multiple steps to protect domestic technology and intellectual property from certain discriminatory and burdensome trade practices by China. These actions were announced following a report of the Office of the U.S. Trade Representative regarding China’s practices with respect to technology transfer, intellectual property and innovation.
The United States Trade Representative’s (USTR) Section 301 investigation identified four of China’s aggressive technology policies that put 44 million American technology jobs at ris. These include: Forced technology transfer; Requiring licensing at less than economic value; Chinese state-directed acquisition of sensitive United States technology for strategic purposes; and Outright cyber theft.