China’s economic model represents an “unprecedented” threat to the world trading system that can not be addressed under current global rules, U.S. Trade Representative (USTR) Robert Lighthizer said. “There is one challenge on the current scene that is substantially more difficult than those faced in the past, and that is China,” he said in a speech in Washington. “The sheer scale of their coordinated effort to develop their economy, to subsidize, to create national champions, to force technology transfers and to distort markets in China and throughout the world is a threat to the world trading system that is unprecedented.” The World Trade Organization (WTO) and its rules were not designed to deal with China’s current approach to its economy, he said.

Lighthizer said he doesn’t want to jump to any conclusions from an ongoing USTR investigation into alleged intellectual property violations by China under Section 301 of the Trade Act. The provision allows the President to unilaterally impose tariffs and other restrictions to protect U.S. industries from unfair trade practices by foreign nations. Lighthizer said he gets “an awful lot of complaints,” especially from American Chief Executives from major companies about having to hand over their technology to joint-venture partners in China, and on the issue of Chinese piracy.

It was the first major public speech by Lighthizer, 69, who was confirmed in May as USTR. He served as a Deputy USTR under President Ronald Reagan, earning a reputation as a hard-nosed negotiator.

Lighthizer’s comments on China may damp speculation that the departure of White House Chief Strategist Steve Bannon, a staunch economic nationalist, would lead to a less hawkish tone on trade from the White House.

But Chinese researchers say the talk of Lighthizer is just bluster and there is no real threat of a trade war. Beijing did not directly hit back at Lighthizer over his criticism. Chinese Foreign Ministry Spokesman Lu Kang said that China would go to the World Trade Organization (WTO) to resolve any trade disputes.