Friday, March 30, 2018

Trade war and intellectual rights

Donald Trump declared to increase the tariff to China, condemning its intellectual property theft.

His policy ignited the fear of trade war, bringing world suppression of the stock price. In Japan, the mean price of dominant company value decreased by up to 5% in a day.

Intellectual property is now one of the strongest incomes for the US. It is rational for Trump to be stuck to protect its benefit.

On the other hand, China market is too big to be crashed by the US and its allies. Even if China is violating international legislation of copyright, it is difficult to exclude China from the counterparts of the trade. Investors know this inconvenient fact well.

Therefore, people in the center of business industry, like Tim Cook, are critical to Trump's aggressive policy.

Independent: Apple boss Tim Cook calls for 'calm heads' amid fears of US and China trade war

But, it is also ironic that big American companies are struggling to keep their advantages on intellectual rights against China, Korea, and Asian countries. It is not limited to IT industry but also adapted to the medicine. Pharmaceutical companies are eager to prohibit Indian companies from mimicking their recipe.

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