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
Apple becomes the first company to hit $1 trillion stock market valuation.
Becky Berkman

2018-08-01 11:43:00 Wednesday ET

Apple becomes the first company to hit $1 trillion stock market valuation.

Apple becomes the first company to hit $1 trillion stock market valuation. The tech titan sells about the same number of smart phones or 41 million iPhones

+See More
We can decipher valuable lessons from the annual letters to shareholders written by Amazon CEO Jeff Bezos.
Becky Berkman

2019-07-19 18:40:00 Friday ET

We can decipher valuable lessons from the annual letters to shareholders written by Amazon CEO Jeff Bezos.

We can decipher valuable lessons from the annual letters to shareholders written by Amazon CEO Jeff Bezos. Amazon is highly customer-centric because the wor

+See More
OraSure and its subsidiary DNA Genotek specialize in the lean production of home DNA spit tubes.
Monica McNeil

2019-04-01 08:28:00 Monday ET

OraSure and its subsidiary DNA Genotek specialize in the lean production of home DNA spit tubes.

OraSure and its subsidiary DNA Genotek specialize in the lean production of home DNA spit tubes. OraSure extracts core genetic information from microbiome s

+See More
Microsoft acquires GitHub, a software development platform that has been widely shared-and-used by 28 million programmers worldwide.
Joseph Corr

2018-06-04 08:38:00 Monday ET

Microsoft acquires GitHub, a software development platform that has been widely shared-and-used by 28 million programmers worldwide.

Microsoft acquires GitHub, a software development platform that has been widely shared-and-used by more than 28 million programmers worldwide. GitHub's

+See More
Treasury Secretary Steve Mnuchin has released a 147-page report on U.S. financial deregulation.
Peter Prince

2017-05-25 08:35:00 Thursday ET

Treasury Secretary Steve Mnuchin has released a 147-page report on U.S. financial deregulation.

Treasury Secretary Steve Mnuchin has released a 147-page report on financial deregulation under the Trump administration. This financial deregulation seeks

+See More
Senior business leaders can learn much from the lean production system with iterative continuous improvements at Toyota.
Daisy Harvey

2020-07-19 09:25:00 Sunday ET

Senior business leaders can learn much from the lean production system with iterative continuous improvements at Toyota.

Senior business leaders can learn much from the lean production system with iterative continuous improvements at Toyota. Takehiko Harada (2015)  

+See More