Published By : 29 May 2018 | Published By : QYRESEARCH
The clash between the two global superpowers China and the U.S. over trade and intellectual property has shown no signs of letting up. At the recent meeting held on Monday at the World Trade Organization, U.S. President Donald Trump accused China once again of stealing technology ideas, which are already the subject of two lawsuits.
According to the U.S. ambassador Dennis Shea, forceful transfer of technology is the unwritten rule for companies wanting to enter the speedily growing marketplace in China. This is particularly so for those companies wanting to partner with government controlled or government owned Chinese entity.
Shea added that the licensing and administrative regulations of China pressure foreign companies to divulge their technologies to the local companies. The government officials often exploit not-so-clear investment rules to force technology transfer.
Shea said that this tactic would negatively impact the competitiveness of countries.
China Rejects US Accusations of Forceful Technology Transfer
China however has out-an-out rejected the criticism that has led to the two nations sparring on WTO. It has also led Trump threatening US$50 billion in tariff. Chinese ambassador Zhang Xiangchen clearly denied any such forced transfer in the meeting.
Meanwhile, legal experts state that support by WTO is needed by Washington to go ahead and impose tariffs. China, on the other hand, has dismissed Washington’s tariff plan and has resorted to WTO to thwart it.
As per rules set down by WTO, in case if disputes are not sorted within 60 days, the complainant can seek help of a panel of experts which might in turn lead to a protracted legal battle.