U.S. Accuses China of Continuing IP Theft Amid Trade War

Despite the exacting conditions, Kudlow said the president is optimistic about the upcoming meeting with Chinese President Xi Jinping during the Group of 20 summit in Buenos Aires. "I think that's a much better place than where we were two, three, four weeks ago and I think President Trump restarted that".

The findings were issued in an update of the U.S. Trade Representative's "Section 301" investigation into China's intellectual property and technology transfer policies, which sparked U.S. tariffs on $50 billion worth of Chinese goods that later ballooned to $250 billion.

In the report the US accused China of continuing a state-backed campaign of cyber-attacks on American companies that were both intensifying and growing in sophistication.

As an example, it cited an October 2018 report by experts from the U.S. Naval War College and Tel Aviv University that found that China Telecom may be engaging in a "malicious" campaign to "hijack Internet traffic and direct it through Mainland Chinese servers for possible collection and analysis".

"As we move toward the G20 meeting, communications, very detailed communications are occurring at all levels of government", Kudlow said.

That list would require extremely significant changes to Chinese economic policy. It added that China had made clear it would not change its policies in response to the initial investigation.

Optimism for the Trump administration striking a trade deal with Beijing dimmed over the weekend, as US-China tensions were on full display at a multilateral summit in Singapore. "In particular, Chinese [venture capital] investment in USA technology centers such as Silicon Valley has intensified in recent months", its authors wrote.

When China was negotiating its WTO entry, the USA wanted to bring politics into the discussion, said Mr Long.

"We completed this update as part of this administration's strengthened monitoring and enforcement effort", Lighthizer said in a statement.

U.S. Vice President Mike Pence said on Saturday that the United States would not back down from the trade dispute, and might even double tariffs, unless Beijing bowed to U.S. demands. You're not going to get a deal unless it suits American interest.

"[Trump] believes that China would like to have a deal", said Kudlow to FOX Business' Stuart Varney on Tuesday.

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