Allegations of IP theft a 'fabrication': China
The Chinese government has issued a robust defence of the country’s IP regime and rejected allegations of technology theft as an “unfounded fabrication” in a white paper on the continuing trade talks with the US.
“Historical records confirm that China’s achievements in scientific and technological innovation are not something we stole or forcibly took from others; they were earned through self-reliance and hard work,” said China’s State Council Information Office in the paper, issued on Sunday, June 2.
In the document, titled “China’s Position on the China-US Economic and Trade Consultations”, the Chinese government said that the country’s IP protection regime was consistent with international standards.
“The understanding of the importance of IP among the general public and business community in China has increased, the value of royalties paid to foreign rights-holders has risen significantly, and the number of IP applications and registrations has surged,” the white paper said.
Without specifying, the document also noted that there had been “concerns” raised by foreign firms doing business in China, and said that these had “already been addressed through judicial reform and a strengthened enforcement mechanism”.
China has been accused of enabling the forced transfer of technology and trade secrets to its companies from foreign businesses entering the Chinese market.
The Chinese government has consistently denied the allegations, but nonetheless enacted a new Foreign Investment Law earlier this year which specifically prohibited the practice of forced technology transfer.
The legislation laid down non-discrimination against foreign companies and stricter penalties for non-compliance with the new rules as a “cornerstone” of Chinese law, local state media said in April.
In the new white paper, the government reiterated its position that “accusations against China of forced technology transfer are baseless and untenable”.
Issues around IP have proven to be one of a number of obstacles in the continuing trade negotiations between the Chinese and US governments.
The State Council Information Office criticised the US government for “backtracking” on its commitments during the negotiations, citing the allegations of IP theft and the subsequent US imposition of tariffs on Chinese exports in 2018.
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