Quote Under my Administration, the theft of American prosperity will end. We’re going to defend our industry and create a level playing field for the American worker — finally.

PROTECTING AMERICAN COMPETITIVENESS: President Donald J. Trump is taking action to address Chinese policies and practices that are harming American innovation.

The President has directed his Administration to consider a range of actions to respond to China’s acts, policies, and practices involving the unfair and harmful acquisition of U.S. technology.

President Trump’s Administration will propose for public comment adding 25 percent additional tariffs on certain products that are supported by China’s unfair industrial policy. Sectors subject to the proposed tariffs will include aerospace, information communication technology, and machinery.

USTR will confront China’s discriminatory technology licensing practices through a World Trade Organization (WTO) dispute proceeding.

The Department of Treasury, in consultation with other agencies, will propose restrictions on investment by China in sensitive U.S. technology.

A THREAT TO AMERICAN INNOVATION: President Donald J. Trump based his actions in large part on the findings of the Section 301 investigation conducted by his Administration.

In August, President Trump’s Administration launched an investigation into Chinese acts, policies, and practices related to technology transfer, intellectual property, and innovation. The U.S. Trade Representative (USTR) led the investigation under Section 301 of the Trade Act of 1974, which gives the USTR broad authority subject to Presidential direction to eliminate unfair trade practices or policies that burden U.S. commerce. This was the first Section 301 investigation since 2013. USTR led an extensive investigation based on a thorough analysis of evidence and comments received from academics, think tanks, law firms, trade associations, and American companies and workers. The investigation concluded that China uses foreign ownership restrictions, such as joint venture requirements and administrative review and licensing processes to force or pressure U.S. companies to transfer technology to Chinese entities. China requires foreign companies that access their New Energy Vehicles market to transfer core technologies to a joint venture and disclose development and manufacturing technology for the entire vehicle.

The investigation concluded that China forces U.S. companies seeking to license technologies to Chinese entities to do so on non-market based terms. China imposes contractual restrictions on the licensing of intellectual property and foreign technology into their country, but does not put the same restrictions on contracts between two Chinese enterprises.

The investigation concluded that China directs and unfairly facilitates investments and acquisitions to generate large-scale technology transfer from U.S. companies to Chinese entities. A Chinese government-backed fund helped Apex Technology Co., a Chinese investment consortium, acquire a U.S. computer-printer maker which had previously sued Apex over patent infringement.

The investigation concluded that China conducts and supports cyber intrusions into U.S. companies to access their sensitive commercial information, such as trade secrets. In 2014, the U.S. charged five Chinese military hackers for cyber espionage committed against U.S. corporations and a labor organization for commercial advantage.

An interagency analysis estimates that China’s unfair acts, policies, and practices cause tens of billions in damages to the United States each year.

CONFRONTING UNFAIR TRADE: President Trump has made clear that his Administration will confront unfair trade practices that harm American commerce.