Bloomberg Business
June 15, 2019
Forced or Not? Why U.S. Says China Steals Technology
It’s one of the most contentious fronts in the U.S.-China trade war: so-called forced technology transfers. The term refers to a spectrum of practices through which foreign companies that want to operate in China are induced to part with their know-how. That may be simply through a requirement to form a joint venture with a local firm, or more insidious bureaucratic methods like overly intrusive inspections. The Chinese government dismisses allegations of strong-arming as “utterly unfounded,” describing any cooperation as “voluntary” and “based on market principles.” A 2018 report by the U.S. Trade Representative quoted one ex-White House official as saying the transfer requirements are voluntary in the same way a business proposition from Vito Corleone in “The Godfather” was.
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The Reference Shelf (Bloomberg Business)
- The U.S. Trade Representative’s March 2018 report on matters including China’s alleged forced technology transfers, and its November update.
- QuickTake explainers on intellectual property, China’s new investment law and Made in China 2025.
- Update to the IP Commission Report on theft of U.S. intellectual property.
- Bloomberg Opinion’s Anjani Trivedi says carmakers show how the issue of forced transfers is “overstated.”
June 15, 2019
Forced or Not? Why U.S. Says China Steals Technology
It’s one of the most contentious fronts in the U.S.-China trade war: so-called forced technology transfers. The term refers to a spectrum of practices through which foreign companies that want to operate in China are induced to part with their know-how. That may be simply through a requirement to form a joint venture with a local firm, or more insidious bureaucratic methods like overly intrusive inspections. The Chinese government dismisses allegations of strong-arming as “utterly unfounded,” describing any cooperation as “voluntary” and “based on market principles.” A 2018 report by the U.S. Trade Representative quoted one ex-White House official as saying the transfer requirements are voluntary in the same way a business proposition from Vito Corleone in “The Godfather” was.
( Text of the article... )
The Reference Shelf (Bloomberg Business)
- The U.S. Trade Representative’s March 2018 report on matters including China’s alleged forced technology transfers, and its November update.
- QuickTake explainers on intellectual property, China’s new investment law and Made in China 2025.
- Update to the IP Commission Report on theft of U.S. intellectual property.
- Bloomberg Opinion’s Anjani Trivedi says carmakers show how the issue of forced transfers is “overstated.”