President Trump Signs Memorandum To Combat Discriminatory Or Unreasonable Technology Transfer, Intellectual Property, And Innovation Practices By China

On March 22, 2018, President Trump signed a memorandum instructing his administration to take action against the “unfair and harmful acquisition of U.S. technology” by China.

The President previously instructed United States Trade Representative (“USTR”) Lighthizer to investigate under Section 301 of the Trade Act of 1974 the “acts, policies, and practices” of the Chinese Government related to technology transfer, intellectual property, and innovation practices. In its 180-page report, USTR chronicled multiple Chinese acts, policies, and practices, and focused on Chinese ambitions with respect to certain high-tech industries. For example, USTR reports that the State Council of China released its 10-year plan for targeting ten strategic advanced technology manufacturing industries for promotion and development, specifically (1) advanced information technology; (2) robotics and automated machine tools; (3) aircraft and aircraft components; (4) maritime vessels and maritime engineering equipment; (5) advanced rail equipment; (6) new energy vehicles; (7) electrical generation and transmission equipment; (8) agriculture machinery and equipment; (9) new materials; and (10) pharmaceuticals and advanced medical devices. USTR also notes that the State Council called for China to achieve 40% self-sufficiency by 2020 and 70% self-sufficiency by 2025 in core components and critical materials.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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