Trump Plans to Slap Stiff Tariffs and Investment Restrictions on China
Last August, Mr. Trump ordered an investigation into four types of Chinese trade practices, including requiring companies to share trade secrets to
gain access to the Chinese market, forcing them to license their technology in China at below-market rates and cyberintrusions to steal technology.
The measures will be targeted at imported Chinese goods in as many as 100 categories — hitting everything from shoes
and clothing to consumer electronics — and will impose restrictions on Chinese investments in the United States, people briefed on the measures said.
Experts worry that the United States’ actions could ignite a trade war, noting
that Chinese economic officials have a keen understanding of the American system and are good at designing targeted retaliatory measures against American agricultural products and other exports.
Last year, Mr. Trump held off imposing tough trade measures against China because, he said, Mr. Xi was cooperating in
his campaign to pressure the leader of North Korea, Kim Jong-un, over his nuclear and ballistic missile programs.
The effect of the China tariffs would be larger and more concentrated than the steel
and aluminum measures and would have a bigger impact on United States consumers, who are heavy purchasers of electronics, clothing and other Chinese imports.
“While some are eager to continue seeking as much engagement with China as possible, others are openly using terms
and invoking options they hadn’t previously considered.”
The United States’ chief trade representative, Robert Lighthizer, who testified before the House Ways and Means Committee on Wednesday, indicated
that the administration was specifically concerned about Chinese policies that compel American companies to share technology when they make investments in China.
