The White House is planning to open a deep probe into China’s trade practices. It is distraught as Chinese government is making headway in fields like microchips, electric cars and other important technologies of the future.
This shift will bring a shift away from cooperation in Washington and Beijing as administration officials have become exasperated as China is unwilling to face North Korea over its ballistic and nuclear missile programs.
The Trump administration cannot take any steps to penalize China as that may call for tensions between two countries. The economic growth of China is dependent upon its export sector even though Beijing is trying to expand its economy. China offers a profitable market to US for American automakers, technology companies like Apple, farmers and many others.
China has great industrial aspiration that is difficult for US to ignore. China is aiming to be a pioneer in many fields by 2025 like driverless cars, medical devices, semiconductors, artificial intelligence, robotics and many other technologies. This has caught the attention of Trump administration. China sets to be a global leader with the help of concoction of state money and the preservation of these industries from American contenders.
Simultaneously, Chinese government has stipulated that the American companies sever the licensing fees that they levy for essential patents. Recently, specifying cyber security worries, Chinese officials have reiterated that International technology companies like Apple, Amazon and Microsoft must come up with China based data centers. They have also made clear that the western automakers should shift their research base to China if they want to be considered for large subsidies.