Dialogue works better than threat on IP issues

The United States has launched an investigation to determine whether China has indulged in "forced transfer of American technologies and theft of American intellectual property". US Trade Representative Robert Lighthizer subsequently announced an investigation into IP issues relating to China under Section 301 of the US Trade Act of 1974.

US President Donald Trump has termed it "a very big move". And he is right. It indeed is a big move - backwards.

Since the meeting between President Xi Jinping and Trump at Mar-a-Largo in Florida, both governments have established official channels for dialogue and working-level cooperation, including on IP issues. In fact, bilateral cooperation on IP protection has been yielding results for many years. The US and China both are signatories to the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) under the World Trade Organization regime and other relevant international conventions. As such, the Trump administration can simply refer any IP issue to the WTO for resolution, instead of taking unilateral action under Section 301.