The Chinese law on technology transfer for foreign companies is a major complaint of the US – Trump says China is stealing US technology and intellectual property.
What is the Chinese view on this? What does international law have to say about it as a contractual obligation for foreign firms?
The requirement that foreign companies engage in forced Joint Ventures with Chinese companies and as a result end up sharing intellectual property with the Chinese partner is a non-tariff barrier to foreign investment.
China’s position would likely be that no one forced these foreign companies to do business in China under these conditions, but that the foreign companies voluntarily entered such arrangements as a result of their desire to benefit from low cost China manufacturing or from the sizable China market. China’s position will be that any IP transfer is a result of voluntary agreements between private companies.
The Trump administration will argue that the underlying policy and regulatory framework is designed to encourage and even require such IP transfer so the situation is not truly fair or level for the foreign companies forced to give up IP.