President Trump took that current trade actions against China to the next level this week as he signed a Presidential Memorandum to probe China’s laws on Intellectual properties (IP) of the companies in the United States. The move comes just a week after the US Department of Commerce announced affirmative preliminary countervailing duties on Aluminium foils imported from China.

According to White House communications,

President Trump has signed a Presidential Memorandum to direct the United States Trade Representative (USTR) to examine whether China should be investigated for unreasonable or discriminatory policies that may harm American IP rights, innovation, or technological development. USTR will analyze issues raised by the Presidential Memorandum and consult with Government agencies and advisory committees to determine what action, if any, is appropriate. While there have been serious and consistent allegations of a problem with China and IP theft, President Trump is not prejudging the inquiry and USTR will decide whether to launch a formal investigation and, if so, whether action should be taken and what that action would be.

According to the 2017 update to the 2013 report of the Commission on the Theft of American Intellectual Property (IP Commission Report) released by the National Bureau of Asian Research, Chinese government policies lead to the theft of American IP. China uses restrictions such as joint venture requirements, equity ownership limitations, opaque administrative processes, and other practices aimed at the transfer of United States technology to Chinese companies. China has gained unauthorized access to the computer networks of United States businesses for commercial purpose and, on a number of occasions, has stolen firms’ commercial information. According to the Department of Homeland Security, China, including Hong Kong, accounts for 88 percent of seized counterfeit goods coming into the United States. According to the United States Chamber of Commerce, 86 percent of all counterfeit goods worldwide come from China and Hong Kong. According to the United States Chamber of Commerce, the equivalent of 12.5 percent of China’s exported goods are counterfeit.

While the actions taken up by President Trump would make some American businesses worried over the increasing risk of a trade war with China, his supporters and the majority of the American workers are likely to cheer the move. The probe is also expected to be used as a negotiating tool in the current North Korean crisis.