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United States' view: Forced technology transfer from US companies to Chinese entities[edit]
The US claims that China requires technology transfer through foreign direct investment (FDI)[89] regime and required joint ventures: In many cases, technology transfers are effectively required by China's Foreign Direct Investment (FDI) regime, which closes off important sectors of the economy to foreign firms. In order to gain access to these sectors, China forces foreign firms to enter into joint ventures with Chinese entities they do not have any connection.[90][91]
A number of experts have focused on what they claim is China's "theft" of intellectual property, and that it forces U.S. firms that want to do business there into transferring its confidential technology and trade secrets before having access to their market. Although that kind of transfer is disallowed by the WTO, the negotiations are usually conducted in secret to avoid penalties.[92]
The Commission on the Theft of American Intellectual Property states “Just agreeing to manufacture in China opens yourself” to theft or forced technology transfer. It requires a U.S. response based on “strength and leverage.”[93]
In 2018 the American Chamber of Commerce in China learned that over half its members thought that "leakage of intellectual property" was an important concern when doing business there.[92]Similarly, the EU Chamber of Commerce has also complained that European companies wanting access to the Chinese market often had to agree to transfer vital technology.[94]
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