2:45 p.m. ET, May 13, 2019
The real problem between the US and China in 2 charts
From CNN Business' Paul R. La Monica
The biggest economic bone of contention between the US and China probably isn't the trade balance. It's the issue of fair trade and IP theft.
Torsten Sløk, chief economist with Deutsche Bank Securities, put out a report Monday that showed just how significant the issue of piracy is. This first chart shows that the US, France, Switzerland, Italy and Germany are the biggest victims of IP theft.
And this next chart illustrates that the main perpetrator of these crimes is China. Turkey is a very distant second. Electronics, jewelry, medical devices, clothing and sneakers as well as toys are among the most pirated products.
With that in mind, it's worth wondering whether the US should focus more on fair trade practices and less on trying to level the trade balance.
"There are lots of multinationals complaining about IP theft," said Matt Forester, chief investment officer of BNY Mellon's Lockwood Advisors.
Forester argued that any trade deal with China will have much more support from American allies if it focuses more on patent protection and less on trying to convince China to buy more US goods.