Trump close to decision regarding China-US trade practices

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US President Donald Trump is close to a decision on how to respond to what he considers China's unfair trade practices, a senior Trump administration official said on Tuesday.

Trump is considering encouraging US Trade Representative Robert Lighthizer to initiate an investigation of Chinese trade practices under the 1974 Trade Act's section 301, the official said. An announcement could come as early as this week, the official said, speaking on condition of anonymity.

Under Trade Act of 1974, it allows the president to unilaterally impose tariffs or other trade restrictions to protect US industries from "unfair trade practices" of foreign countries, such as trade agreement violations, or "discriminatory" actions that burden US commerce.

US President Donald Trump greets guests during an event with small businesses in the East Room of the White House in Washington, US, August 1, 2017. /Reuters Photo

The United States has a long list of grievances about China on trade, including accusations of steel dumping and theft of US intellectual property.

China has said that trade between China and the United States benefits both sides and that Beijing is willing to work with Washington to improve their trade relationship.

AFP Photo

The WTO provides a forum for resolving trade disputes, but Lighthizer and US Commerce Secretary Wilbur Ross have complained that it is extremely slow, often taking years to reach a conclusion, and that the Geneva-based organization has an inherent anti-U.S. bias.

Reuters Photo

(With inputs from Reuters)

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