Author: CARLOS TEJADA / Source: New York Times
Arranged marriages. Whispered warnings. Outright theft.
For years, American companies have complained that the Chinese government finds ways to get them to hand over their most valuable trade secrets.
Those companies — which usually complain anonymously, fearing Chinese retribution — have found a sympathetic ear in the Trump administration.American trade officials on Thursday cited those practices as a major motivation for their plans to levy tariffs and penalties on $60 billion in Chinese imports and to take a tougher stance on the vast and lucrative trade relationship between the two countries. The report outlines in blunt terms how intellectual property — everything from product designs and sensitive data to general know-how — has become a point of contention in global trade relations, joining longstanding areas of dispute like steel.
The landscape is more complex than the Trump administration’s complaint suggests. American companies sometimes willingly strike deals with Chinese partners because they feel China is too profitable to miss out on. And in some cases, Chinese companies have shown they still have much to learn, even after cozying up to American partners.
Arranged Marriages
In some industries, like car production, China has long required foreign companies to team up with local partners. Auto giants like General Motors and Ford, for example, make cars in Chinese factories that are jointly owned by Chinese partners.
Foreign companies have long complained that they are simply training future rivals. Japanese and European businesses say Chinese rail companies used technology from joint ventures to become giants in high-speed rail.
Trade rules limit how much technology the Chinese partner can get from a joint venture. But some American businesses and the Trump administration say Chinese officials often demand technology under the table.
The joint venture requirements have spread…
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