Author: Tronserve admin
Monday 2nd August 2021 10:45 PM
More Companies in China Handing Over Technology
The number of international companies that believe compelled to hand over technology in exchange for Chinese market access — an issue that sparked President Donald Trump's tariff fight with Beijing — has doubled since two years ago regardless of official promises to end such pressure, a business group reported Monday.
The European Chamber of Commerce in China's report outlined enduring complaints about "forced technology transfer" that China's trading partners say violate its market-opening commitments despite denials and promises of change.
European leaders have slammed Trump's tactics in combating with Beijing over its technology ambitions but echo U.S. criticisms.
One in five companies that participated to a survey in January, before the most current round of U.S. and Chinese tariff hikes, said they felt compelled to hand over technology, up from 10% in a 2017 survey, the European chamber said.
"It is not something that is back in history. It is still happening now," a chamber vice president, Charlotte Roule, revealed reporters ahead of the report's release. She said ending that "should be a priority."
The share of companies that said they felt compelled to transfer technology was higher in some fields — 30% in petroleum and chemicals, 28% in medical devices, 27% for pharmaceuticals and 21% in the auto industry. One-quarter of those companies said transfers were happening at the time of the survey.
The review provided no details of the reasons why companies felt compelled to hand over technology. But the seriously regulated economy gives Chinese regulators leverage over companies, and business groups say they sometimes give orders in secret.
Trump started elevating tariffs on Chinese imports last July over complaints Beijing steals or pressures foreign companies to hand over technology. Europe, Japan and other trading partners reply U.S. complaints that such practices breach Chinese commitments to open its markets and handle foreign companies equally in substitution for access to their markets.
"China's lagging reform agenda not only holds back economic development but it has also driven global tension," said Roule.
Chinese authorities disavow foreign companies are demanded to hand over technology. But companies in auto manufacturing, electronics and other industries that would like to operate in China are obligated to be minority partners in ventures with state-owned partners, which forces them to share technology and expertise.
A law implemented in March by China's ceremonial legislature tries to reassure foreign investors by prohibiting use of "administrative measures" to compel technology transfer. Business groups welcomed that but said Chinese officials still have extensive leverage in the heavily regulated economy.
Tech transfer was considered one of a series of complaints the European chamber said prompts pessimism among companies about whether the ruling Communist Party will follow through on promises to open its markets.
One-third of companies interviewed remarked they don't expect ever to see a "meaningful opening" of Chinese markets.
This article is originally posted on manufacturing.net