Here is the actual law....mcl 750.226
Apparently you can carry a knife less than 3 inches in length with the intent to use it unlawfully against the person of another and it does not violate the statute......j/kCarrying firearm or dangerous weapon with unlawful intent—Any person who, with intent to use the same unlawfully against the person of another, goes armed with a pistol or other firearm or dagger, dirk, razor, stiletto, or knife having a blade over 3 inches in length, or any other dangerous or deadly weapon or instrument, shall be guilty of a felony, punishable by imprisonment in the state prison for not more than 5 years or by a fine of not more than 2,500 dollars.
I don't know if you have read the sticky "wash, rinse, repeat," but that is a great place to start.
Reasonable suspicion depends on the totality of circumstances involved. Does the clip on the outside of your pocket itself rise to the level of reasonable suspicion? That would require LEO to articulate his reasonable suspicion that your have been, are, or are about to be engaged in criminal activity.
Would it be reasonable to think that a person possibly carrying a knife while walking down the sidewalk minding his own business is engaged in some sort of criminal activity?
It may be wise if stopped, to politely refuse any searches or seizures, but to not resist. If you were charged with something, and had to go to court, not consenting to the search may make your defense attorney's job easier.