Apple and IBM criticise Chinese investment rules over IP theft
A trade group representing Apple, Google and other technology companies has criticised Chinese rules on inbound investment, stating that they enable easier theft of US IP.
The criticism came during the first hearing of US trade representative Robert Lighthizer’s probe into possible Chinese IP theft.
According to reports in the South China Morning Post, the senior vice-president of the US-China Business Council, Eric Ennis, was speaking at the first hearing in Washington on Tuesday, October 10 into the possible probe.
Ennis stated that rules requiring US businesses to transfer technology to Chinese enterprises “as a condition to gain market access” might place “unreasonable and discriminatory burdens” on American commercial interests, according to the newspaper report.
The event was the first hearing in support of Lighthizer’s possible inquiry into alleged Chinese intellectual property theft under section 301 of the US Trade Act of 1974.
Apple and IBM are members of the US-China Business Council, which consists of 200 US-based companies. Other members include Amazon and Google.
As reported by WIPR in August, President Donald Trump signed a memorandum asking Lighthizer to assess whether an investigation into Chinese IP theft is necessary.
Trump said his responsibility is to protect American workers’ technology and industry from “unfair and abusive actions”.
“We will combat the counterfeiting and piracy that destroys American jobs; we will enforce the rules of fair and reciprocal trade that formed the foundation of responsible commerce,” he stated.
There had been rumours about the memorandum before it was signed on August 15, with several newspapers reporting that the Chinese government’s pledge to lead the way in technologies such as driverless cars and artificial intelligence by 2025 had led to concerns regarding US IP theft.
During his campaign trail, Trump promised to get tougher on Beijing over criticism that US companies faced too many restrictions in China.
Several other countries including Germany, Canada and Japan have all expressed concern over China’s behaviour on IP theft in the past, according to the New York Times.
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