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

Would you rather receive $1,000 each day for one month or a magic penny that doubles each day over the same month?

Laura Hermes

2017-04-07 15:34:00 Friday ET

Would you rather receive $1,000 each day for one month or a magic penny that doubles each day over the same month?

Would you rather receive $1,000 each day for one month or a magic penny that doubles each day over the same month? At first glance, this counterintuitive

+See More

There are several highlights from the first news conference after Trump's presidential election victory.

Monica McNeil

2017-01-23 09:30:00 Monday ET

There are several highlights from the first news conference after Trump's presidential election victory.

There are several highlights from the first news conference after Trump's presidential election victory: The Trump administration will repeal-and-

+See More

Corporate investment management

Charlene Vos

2022-04-15 10:32:00 Friday ET

Corporate investment management

Corporate investment management  This review of corporate investment literature focuses on some recent empirical studies of M&A, capital investm

+See More

The Trump fiscal trifecta of lower income taxation, new infrastructure, and deregulation has yet to run its natural course.

Becky Berkman

2017-04-25 06:35:00 Tuesday ET

The Trump fiscal trifecta of lower income taxation, new infrastructure, and deregulation has yet to run its natural course.

This nice and clear infographic visualization helps us better decipher the main memes and themes of President Donald Trump's first 100 days in office.

+See More

Fed minutes reflect gradual interest rate normalization in response to high inflation risk.

Dan Rochefort

2018-02-15 07:43:00 Thursday ET

Fed minutes reflect gradual interest rate normalization in response to high inflation risk.

Fed minutes reflect gradual interest rate normalization in response to high inflation risk. FOMC members revise up the economic projections made at the Dece

+See More

Agile lean enterprises break down organizational silos to promote smart collaboration for better profitability and customer loyalty.

Laura Hermes

2020-11-03 08:30:00 Tuesday ET

Agile lean enterprises break down organizational silos to promote smart collaboration for better profitability and customer loyalty.

Agile lean enterprises break down organizational silos to promote smart collaboration for better profitability and customer loyalty. Heidi Gardner (2017

+See More