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>Some American company makes slightly less profit?

That's a bingo. Now allow me to morally justify this AMERICA style:

"When we allow foreign researchers to steal research from healthcare businesses it reduces the return on investment these businesses make. This has a chilling effect on the amount of Cancer research that can be funded. With less innovation by the world leader in Cancer research ultimately more patients will unnessecarily die and suffer"

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But how much does it actually cost to re-steal that IP back from China? Does America actually respect chinese intellectual property?

Re-stealing the IP isn't as profitable as being the first to market. I guess ?

Is the chemo market sensitive to first-to-market effects ?

This is an interesting argument, but I think there are some logical problems in it. But it is the type of argument you will hear as justification for this approach.

Anyone uses "chilling effect on investment" in an argument for something is probably lying through their teeth trying to deceive you.

See also: trickle down economics, safety regulations, consumer financial protections...

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