US trade policy update - Nomura

Analysts at Nomura noted that President Trump today signed a memorandum directing US Trade Representative Robert Lighthizer to begin a formal probe into China’s intellectual property (IP) policies.

Key Quotes:

"The Trump administration contends that the Chinese government unfairly forces US companies to transfer the IP or that the IP is stolen. This process is still in a flux and will take some time, possibly more than a year, to resolve. Additionally, NAFTA renegotiations begin this week. The outcome this early remains highly uncertain but the language and proposals from the Trump administration have moderated compared to rhetoric from the presidential campaign."