US accusation of China forcing technology transfer is nonsense
By Zhong Sheng, People's Daily
Some US officials are interested
in discrediting China with the so-called "forced technology
transfer" accusation and it seems that they’ll never get bored
with it. Though their remarks were doubted internationally and domestically,
and despised by the US business circle, these officials just couldn't resist
stirring things up.
China made a clear commitment
that it would not require foreign investors to commit to technology transfer
into China in its WTO accession protocol. The WTO Agreement on Trade-Related
Aspects of Intellectual Property Rights sets high standards of intellectual
property protection and China did more than it was required through making the
commitment. In fact, most WTO members did not made such a promise under the
multilateral trading system.
In China, there is no law that
requires foreign companies to transfer technologies to their Chinese partners,
and technology transfer between enterprises is a normal business practice in
international economic cooperation.
What foreign companies and their
Chinese counterparts do, such as carrying out technological cooperation in
accordance with market principles and signing legally binding agreements on the
basis of equal consultation, is a choice independently made by market players
for mutual benefits and win-win results.
The enterprises are free to make
reasonable demands in negotiations considering cost effectiveness, which is
within their rights of bargaining and should be protected.
Foreign investors have every
right to file appeals and lawsuits against monopoly on the basis of
international rules if they believe that the Chinese companies are abusing their
dominant power in the market.
No company wants to do
unprofitable or forced business in China. Insightful people in the world pointed out that
the so-called "forced technology transfer" accusation not only
violates business ethics, but also insults the intelligence of foreign
entrepreneurs.
Input and output have always been
correlated. Technological innovation and exchanges drive the advancement of
productivity forces. By transferring some technologies, the corporations could
effectively recover the cost of innovation and open up the market, which
provides follow-up support for them to develop new technologies. This is the
normal operation mode of multinational companies.
What's more, under the highly
competitive market environment where only the fittest survives, a company will
not possibly share the market and make profits without advanced technologies.
It is odd that some people in the
US could stir up trouble from such a simple market rule and economic knowledge.
Daniel Gros, director of the
Center for European Policy Studies, pointed out that China’s
technological progress is an important reason why certain people trumpeted “forced
technology transfer”.
“Previously, Western companies
were more willing to transfer their technology, based on the expectation that
Chinese competitors would be unable to adapt and master it, anyway. With China
now producing more graduates with bachelor’s degrees in science and engineering
than the US and Europe combined, that expectation is no longer tenable.” Gros
said.
China has a huge market with
nearly 1.4 billion and the world's largest and fastest growing middle-income
group. The country welcomes foreign investment and did not and will not set a
threshold of technology transfer for foreign companies.
Foreign companies and their
Chinese partners cooperate in scientific research and transfer technologies
driven by market rules and mutual interests, instead of being forced. Their
purpose is to occupy a larger share of the market and make more profits.
It is pure nonsense to say that
China forces foreign companies to transfer technologies. In fact, it is the US
that has blocked Chinese companies from investing in the American technology
enterprises, restricted the export of high-tech materials to China and employed
political power to impose pressure on China's private companies.
Some people in the US wish that
they could enjoy the benefits on the foreign market and maintain dominance in
high technology, cornering other countries to the lower end of the global value
chain.
The truth will finally reveal
itself and justice always inhabits people's hearts. Some people in the US
really need to stop spreading rumors and looking for troubles. Even though they
are good at chopping logic and staining others' reputation, their nonsense will
eventually be revealed to the entire world.
(Zhong Sheng is a pen name often
used by People's Daily to express its views on foreign policy.)
US accusation of China forcing technology transfer is nonsense
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