What is the transaction "30 1 bar"?

Today, Beijing time, Trump finally signed an executive order instructing the US Trade Representative to investigate China's "unfair trade practices", that is, he finally waved a "30 1 stick" in the media. The reason is that "China enterprises are suspected of infringing American intellectual property rights and forcing American enterprises to transfer technology".

The so-called "30 1 stick" refers to Article 30 1 of American Trade Law 1974. This clause is called a "big stick" because it makes it possible for the United States to use it as a "weapon" of trade.

How is this clause stipulated? "When the United States unilaterally determines that trade is unreasonable," the United States can initiate investigations and negotiations. Once the negotiation results are unsatisfactory, it can propose retaliatory measures in trade, including but not limited to suspending trade agreements, investment barriers, canceling tax exemption and punitive tariffs.

Note that the key is "unilateral". As long as the United States determines that some trade practices of other countries are "unreasonable", "illegal" and "unfair", it can launch such investigations to force rival countries to change their trade practices and laws and regulations.

As the name implies, this law was promulgated in 1974. In the subsequent revisions, there were "Super 30 1 Clause" and "Special 30 1 Clause", the former aimed at trade liberalization and the latter aimed at intellectual property protection.

In the past 40 years, the United States used this tool most frequently in the 1980s. Before China joined the WTO, the United States launched the "Special 30 1 investigation" on China three times in 19 1, 1994 and 1996. 20 10 after China's entry into WTO, the United States also launched a 30 1 survey on new energy in China.

Of course it has a great influence. For example, 20 10, China finally agreed to stop providing subsidies to wind power enterprises that use domestic parts; 130 1 special investigation initiated by Japan in 1989 forced Japan to open its computer, satellite and forest products markets; Three investigations in the 1990s also enabled China to amend the Patent Law and Trademark Law successively, and promulgated the Law against Unfair Competition and other laws and regulations on intellectual property protection.

In fact, after China's accession to the WTO, the United States 30 1 clause, a mechanism with strong unilateralism, has been rarely used because of its adjudication mechanism. In 2004 and 2007, the Office of the US Trade Representative twice rejected the proposal of domestic organizations to apply for 30 1 investigation on China.

But this does not mean that the United States has not been staring at China. Since 1989, when the United States first published the special report 30 1, China has been included in the report's "priority watch list" for 28 times-"Big Brother has been watching you".