ALSO READUS begins probing China technology transfer despite threats of a trade war China warns against 'trade war' with US Nobody will win in a 'trade war' with US, warns China US starts investigating China's intellectual-property practices Donald Trump may order investigation into China's trade practices
China on Monday warned that it will take "all appropriate measures" in response to probe ordered by the United States (US) President Donald Trump into Beijing's intellectual property right (IPR) violations, which could have an adverse impact on the trade ties between the world's top two economies.
US Trade Representative Robert Lighthizer on Friday formally initiated an investigation into China's IP practices under a rarely used trade law, sparking worries in Beijing over its lucrative trade ties with Washington.
Section 301, once heavily used in the 1980s and the early 1990s, allows the US to unilaterally impose tariffs or other trade restrictions on foreign countries.
But the US has rarely used the outdated trade tool since the World Trade Organisation (WTO) came into being in 1995.
Without specifying the measures, a spokesperson of China's Ministry of Commerce (MOC) said China will take "all appropriate measures" to defend interests and will keep an eye on the investigation, state-run Xinhua news agency reported.
"China is strongly discontented about such unilateral, protectionist practice," the spokesperson said in a statement.
Since the historic meeting between the presidents of both countries in April, the two sides have made solid progress, and the launch of the investigation sent a wrong signal to the world, the official said.
"We urge the United States to respect facts, respect wishes from businesses of both countries for cooperation, respect multilateral rules, and act with prudence," the spokesperson said.
The US-China bilateral trade last year totalled to $578.6 billion.