US must rely on multilateral trade diplomacy, not bilateral threats

ON Monday, US President Donald Trump signed an executive order authorising US Trade Representative Robert Lighthizer to determine whether there should be an investigation of China's practices in the area of intellectual property protection.

After much heated rhetoric criticising China's trade policies, which goes back to last year's US presidential election campaign (and indeed, even earlier), this is the first concrete step taken by the Trump administration that could lead to punitive policies towards China on trade issues. If Mr Lighthizer's investigation concludes that China has indeed breached rules on intellectual property protection, this would open the way for unilateral protectionist measures under the draconian Section 301 of the US Trade Act of 1974. That would, if it happens, be a retrograde step.

What is also a retrograde step is the linking of US trade policy towards China with China's actions (or lack thereof) to rein in North Korea's missile and nuclear programmes. Although some US officials have denied such a link, Mr Trump's statements clearly suggest that it exists. "... if China helps us (on North Korea), I feel a lot differently toward trade," he said a few days ago.