Press Release: CPA Supports Administration’s Section 301 Investigation

August 07, 2017

The Coalition for a Prosperous America welcomes and supports the Trump administration’s planned investigation of China’s trade practices under Section 301 of the 1974 Trade Act. According to press reports, the Trump Administration is close to launching an investigation that would likely focus on Chinese trade practices that violate the intellectual property (IP) rights of US companies. For years, US companies have complained privately and publicly that Chinese requirements for joint ventures with Chinese-owned companies and other Chinese legal practices often amount to little more than theft of US intellectual property without compensation.

“China has exploited trade laws to benefit their industries at the expense of US industry for years,” said CPA chairman Dan DiMicco. “China is now targeting technology industries with the goal of global leadership, which would result in shrinking markets for US companies. The Administration needs to take action to stop the wholesale theft of US intellectual property and make sure US companies don’t play China’s game and sell their souls for a minuscule piece of the Chinese market.”

Under Section 301, the president can unilaterally impose tariffs on a nation if an investigation finds that nation has policies that “burden, restrict, or discriminate against US commerce.” According to many industry sources, Chinese forced technology transfer has affected US industries including steel, semiconductors, software, aerospace, automotive, and others. Many observers also believe the Chinese government has played a role in espionage cases involving individuals stealing US trade secrets and transferring them to Chinese companies, such as the current case in federal court involving seven individuals who allegedly stole secrets regarding the production of syntactic foam for the benefit of a Chinese company. Syntactic foam has naval military uses.

About CPA: The Coalition for a Prosperous America is the nation’s premier organization working on the intersection of trade, jobs, tax and economic growth. We represent the interests of 2.7 million households through our agricultural, manufacturing and labor members.

Contact Paola Masman

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