Thursday, July 29, 2010

China denies it forces technology handovers for market entrance

Beijing on Thursday denied US charges that it forces foreign firms to hand technology over to Chinese rivals as the price of entry to its huge market, saying its policies are in line with global rules.

The comments were in response to a US Chamber of Commerce report this week that accused China of abusing the allure of its vast market to push foreign companies to transfer their latest technologies to Chinese competitors.

This was a "blueprint for technology theft on a scale the world has never seen before", it said.

China committed at high-level Sino-US talks in May that its innovation policies would be non-discriminatory, protect foreign intellectual property rights (IPR), and ensure open markets and trade, according to Washington.

Beijing also pledged to leave the terms and conditions of technology transfer, production processes, and other proprietary information to individual enterprises, Kirk's deputy Demetrios Marantis said earlier this month.

China launched its "indigenous innovation" campaign in 2006, officially to encourage the development of domestic technology and thereby reduce its reliance on foreign know-how.

Concerns over indigenous innovation extended to security encryption rules, domestic patent laws and preferential policies for domestic companies, the US Chamber of Commerce report said.

On Wednesday, a Chinese railway official rejected suggestions foreign companies participating in the development of high-speed rail in the country had been forced to transfer their technology in order to gain market access.

China's high-speed trains were based on foreign technology but it had improved the technology to make the trains even faster, He Huawu, chief engineer of the railways ministry, told a news conference.

-AFP

For the full story: http://www.google.com/hostednews/afp/article/ALeqM5iUPfVv-DdypnYkQya9uJ-o8Or9Mw



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