What does forced technology transfer look like, and how does it relate to a commercial context? That is a relevant question at a personal level as I have been negotiating a business partnership in Beijing over the past few months. The technology at the core of the business is IP.
(Sept 16): Forced technology transfer — this has become an article of faith in the litany of complaints that underpin US President Donald Trump’s trade war with China. It makes for a great slogan, but is it true? If it is correct, businesses should be very wary of engaging in business with China. If it is not, then this slur has no place in the formulation of foreign policy and it is not an impediment to doing business in China.
Forced technology transfer is the idea that if you want to work in China, you are “forced” to transfer your technology. The implication is that this is a requirement of the state. Forced technology transfer is a very different matter from intellectual property (IP) theft, which is a very legitimate concern covering areas such as China’s notorious handbag fakes to industrial espionage.
