Forced or Not? Why U.S. Says China Steals Technology
Pretty persuasive.
Photograph: Paramount Studios courtesy of Getty Images
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It’s been one of the most contentious fronts in the U.S.-China trade war: so-called forced technology transfers. The term refers to ways in which companies from the U.S., Europe or elsewhere that want to operate in China are induced to part with their know-how. It may be through a simple requirement to form a joint venture with a local firm, or more insidious methods such as overly intrusive factory inspections. What might once have been a mere annoyance has taken on more serious implications as China has developed into a strategic competitor, especially in growth areas such as artificial intelligence. The Chinese government dismisses allegations of strong-arming as “utterly unfounded,” describing any exchanges as voluntary and conducted on market principles. A 2018 report by the U.S. Trade Representative quoted one ex-White House official as saying the transfers are voluntary in the same way a business proposition from mob boss Vito Corleone in “The Godfather” was.