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CPA Praises White House Implementation of Section 301 Tariffs on High-Tech Goods from China

June 15, 2018
Washington. The Coalition for a Prosperous America (CPA), which includes more than 4 million members in the manufacturing, agricultural, and labor sectors, today strongly praised the Trump Administration’s implementation of new tariffs on $50 billion worth of Chinese goods produced via intellectual property theft, forced technology transfer, and cyber attacks. CPA sees this Section 301 tariff action as crucial in combating China’s aggressive efforts to seize economic dominance of key advanced technology sectors.

Dan DiMicco, CPA Chairman, said, “This is a bold, brave, and necessary step, both to hold China accountable for its hostile actions and to ensure the future viability of key US high-tech sectors. There should be no mistaking China’s hostile behavior, and we commend the president and his trade team of Lighthizer, Ross, and Navarro for taking action. All of the evidence for China’s unacceptable behavior, and the implications for the US economy, are available in the administration’s Section 301 report. Whether it’s the technology theft conducted by China and its government-owned companies, or the coercive practices that force US companies to yield proprietary intellectual property, this is an ugly situation that cannot continue.”

The tariffs imposed today follow a lengthy Section 301 investigation that found China continues to acquire key, high-tech US assets through intellectual property theft, forced technology transfer, and repeated cyber attacks on US computer networks. The tariffs will levy a 25 percent duty on 1,102 products related to a “Made in China 2025” industrial policy that includes industries such as aerospace, information and communications technology, and robotics. The order does not include consumer electronics such as cell phones and televisions.

Michael Stumo, CEO of CPA: “This is a long overdue step. The bottom line is that China steals American technology by any possible means, then sells it back to the US at a profit. In doing so, Beijing is not only directing the erosion of America’s competitiveness in high-tech industries, but ensuring that domestic US companies go out of business at the same time. This is an open-and-shut case of predatory behavior and outright theft, and it will be interesting to hear how critics of the president’s trade strategy can possibly excuse criminal behavior on the part of China. Anyone supporting open trade and the free market should appreciate the president’s carefully considered enforcement of existing US trade law.”

Stumo notes that many of CPA’s member companies have experienced China’s ongoing hacking and technology theft firsthand. While CPA’s members are incredibly productive and efficient, they simply can not compete against ruthless IP theft.

“Our members create the jobs and products that help drive the US economy,” said Stumo. “It’s exactly these sort of companies that undergird America’s future. If we want to have a prosperous country, it’s essential to take a stand now and demand accountability from China so that we can protect American competitiveness.”

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