In the name of Intellectual property, America is indirectly trying to impose a trade war by implementing section 301 of Trade Act 1974 (United States), which is considered to be in opposition to the norms of WTO. US itself admitting the fact had repealed this section in the past and later have decided to go ahead with the controversial section which deals with the unilateral decision and imposing penalties to the countries which fails in the trade regulations. China is being targeted by US because of the economic loss related to the Intellectual property theft. Because of this move war clouds are visible between US and China which will surely affect the global market and economy.