The WSJ reports that The White House is preparing to crack down on what it says “are improper Chinese trade practices” by making it significantly more difficult for Chinese firms to acquire advanced U.S. technology or invest in American companies. The pro business WSJ’s editorial board has has a different opinion. If there is a trade war, China will of course strike where it hurts most the first round of that conflict started after Trump imposed tariffs on washing machines (?) and solar panels.
1. Should the U.S. government impose tariffs on imported Chinese goods in
response to perceived improper trade practices by China? If so, on which goods?
2. Should the U.S. government use a “principle of reciprocity” in response to
perceived improper trade practices by China?
3. Beijing likely to retaliate against tariffs imposed by the U.S. on
imported Chinese goods? How would an anticipated retaliation affect the Trump
administration’s decision whether to impose tariffs?
Interesting is the assertion that the WTO dispute settlement mechanism is ineffective, given the actions of previous US presidents, and the fact that US insisted on the dispute settlement mechanism in the first place.