President Trump is expected to announce penalties and tariffs against Chinese imports on Thursday at approximately 12:30 pm, worth $30 billion or more, for its theft of trade and technology secrets, and China is already threatening to retaliate.
The Trump administration says China’s theft of U.S. technology has killed thousands of jobs in the United States and robbed American companies of billions of dollars in revenue.
Reuters reported: There was no indication of the size and scope of the tariffs, which U.S. Trade Representative Robert Lighthizer said on Wednesday would target China’s high-technology sector and could also include restrictions on Chinese investments in the United States. Other sectors like apparel could also be hit.
“Tomorrow the president will announce the actions he has decided to take based on USTR’s 301 investigation into China’s state-led, market-distorting efforts to force, pressure, and steal U.S. technologies and intellectual property,” the official said.
The New York Times reported: As it looks to create its own national champions, China has been forcing American stalwarts like Qualcomm, Advanced Micro Devices and Hewlett-Packard Enterprise to create joint ventures, hand over their technology or develop local expertise. If they do not, companies risk losing access to China, the world’s second-largest economy.
But China’s national security interests are colliding with those of the United States. A worry is that companies are handing over critical technology that the United States needs for its military, defense or infrastructure. By transferring technology, they may also be giving an edge to Chinese rivals that one day may prove dominant.
This month, the United States government blocked Broadcom’s hostile bid for Qualcomm, a chip maker, citing national security concerns. The fear was that the acquisition would weaken Qualcomm, allowing China an advantage in the race to build the next generation of wireless technology.