U.S., EU, Japan Fire New Warning Shot Over China Trade Abuse

  • Nations to tackle overcapacity in key sectors, IP transfers
  • Alliance comes as U.S. cracks down on steel imports from China

Photographer: Qilai Shen/Bloomberg

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The U.S., European Union and Japan announced a partnership to tackle overcapacity issues and forced technology transfers, which could inflame their relationship with China.

The three countries issued a joint declaration Tuesday at the World Trade Organization biennial meetings that promised to target the “severe excess capacity in key sectors,” market-distorting subsidies, and policies that force companies to transfer their proprietary technologies abroad.