The Trump administration initiates a new investigation into China's abuse of American intellectual property.

Olivia London

2017-08-31 09:36:00 Thu ET

The Trump administration has initiated a new investigation into China's abuse of American intellectual property under Section 301 of the Trade Act of 1974. This strategic move boils down to the fact that the U.S. has just fired the first shot in an open trade war with China. While tax cuts trump trade, this Section 301 investigation can be the first tangible economic sanction against China.

However, Chinese retaliation may manifest in the generic form of large-scale U.S. Treasury bond sales, much less usage and consumption of U.S. soybeans, oats, semiconductors, mobile electronic devices, and other key imports, or both. These economic repercussions reverberate up and down the corporate value chain to induce an adverse impact on U.S. manufacturers, upstream suppliers, and downstream distributors nationwide.

Despite this clear and present trade war with China, the Trump stock market rally continues to benefit the typical institutional or retail stock investor under Section 301 legal protection of U.S. intellectual property. The main beneficiaries are the R&D-intensive firms with numerous patents such as pharmaceutical companies such as Pfizer, Merck, and Johnson & Johnson, tech-savvy platform orchestrators such as Apple, Google, Microsoft, Facebook, and IBM, as well as ecommerce giants such as Amazon and Alibaba.

A potential threat may be the new opportunity. Every cloud has a silver lining!!

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Daniel Goleman explains why great mental focus serves as a vital mainstream driver of personal growth, success, virtue, happiness, and fulfillment in life, business, innovation, and entrepreneurship.

Jonah Whanau

2025-06-28 10:39:00 Saturday ET

Daniel Goleman explains why great mental focus serves as a vital mainstream driver of personal growth, success, virtue, happiness, and fulfillment in life, business, innovation, and entrepreneurship.

Former New York Times science author and Harvard psychologist Daniel Goleman explains why great mental focus serves as a vital mainstream driver of personal

+See More

The financial crisis of 2008-2009 affects many millennials as they bear the primary costs of college tuition, residential demand, health care, and childcare.

Peter Prince

2019-06-23 08:30:00 Sunday ET

The financial crisis of 2008-2009 affects many millennials as they bear the primary costs of college tuition, residential demand, health care, and childcare.

The financial crisis of 2008-2009 affects many millennials as they bear the primary costs of college tuition, residential demand, health care, and childcare

+See More

President Trump meets the CEOs of tech titans such as Apple, Microsoft, Google, and Amazon.

John Fourier

2017-06-15 07:32:00 Thursday ET

President Trump meets the CEOs of tech titans such as Apple, Microsoft, Google, and Amazon.

President Donald Trump has discussed with the CEOs of large multinational corporations such as Apple, Microsoft, Google, and Amazon. This discussion include

+See More

Trumpism may now become the new populist world order of economic governance.

Monica McNeil

2018-07-30 11:36:00 Monday ET

Trumpism may now become the new populist world order of economic governance.

Trumpism may now become the new populist world order of economic governance. Populist support contributes to Trump's 2016 presidential election victory

+See More

OPEC countries have cut the global glut of oil production in order to boost the oil price in recent years.

Monica McNeil

2018-05-11 09:37:00 Friday ET

OPEC countries have cut the global glut of oil production in order to boost the oil price in recent years.

OPEC countries have cut the global glut of oil production in recent years while the resultant oil price has surged from $30 to $78 per barrel from 2015 to 2

+See More

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation.

Jacob Miramar

2019-02-11 09:37:00 Monday ET

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation.

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation. Share repurchases

+See More