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These articles on Chinese trade and barriers often mention forced technology transfer and IP theft. Can someone more knowledgeable than me explain the reality o

These articles on Chinese trade and barriers often mention forced technology transfer and IP theft. Can someone more knowledgeable than me explain the reality of this? It seems that it is such a large imposition I’m surprised anyone does business in China when you know 10-15 years later they will have copied your business.

jacknews 8y ago
I think you only need to look at products available in the market to realize that this is indeed a thing.
aurelienb 8y ago
Because on short term it opens you a big market (1+B users/customers). Because if you don't go there, one of your competitors may go there. Because some people still think that they will only lost low tech/low IP.
zip1234 8y ago
It's taken awhile for companies to catch on. The saga of how the Chinese stole the SU-27 plans from Russia (Licensed the fighter and planned to use Russian components and then switched to Chinese made components after a couple years) is among the ways they do it. https://en.wikipedia.org/wiki/Shenyang_J-11 https://en.wikipedia.org/wiki/Shenyang_J-11 The Russians were desperate for cash at the time and the Chinese were willing to pay. What the Russians didn't count on was the willingness to straight up steal the design and start manufacturing it in China. Companies have gotten a lot better about protecting their designs now but are up against the Chinese government.
phil21 8y ago
> I’m surprised anyone does business in China when you know 10-15 years later they will have copied your business. The Chinese market is huge - many executive types seemingly fall victim to hubris quite often - and this is no exception. That's the most charitable explanation possible. The less charitable and more realistic way this happened in my opinion? No executive cares about 10-15 years from now. At most they are looking a couple years down the road for bonuses.
nosleeptill 8y ago
Largely the "IP theft" is really "IP transfer". In order to conduct business in China, most non-Chinese companies need to partner with a Chinese owned company, that partnership requires that the IP be shared between partner companies. Each Chinese owned company already has another partner, the Chinese Government. IP shared with the Chinese company is then shared with the Chinese Government. The Chinese Government than takes the IP that has been "shared" and they re-distribute that knowledge to other Chinese companies that can benefit. The Chinese government is sitting on massive amounts of IP that was knowingly "shared" That's why it seems the technology sector in China seemed super charged, because it was. Make no mistake the Chinese government is actively trying to steal IP, but most of the IP it has was knowingly shared by Western companies desperate to lower costs and get access to the Chinese market.

jacknews 8y ago

I think you only need to look at products available in the market to realize that this is indeed a thing.

aurelienb 8y ago

Because on short term it opens you a big market (1+B users/customers). Because if you don't go there, one of your competitors may go there. Because some people still think that they will only lost low tech/low IP.

zip1234 8y ago

It's taken awhile for companies to catch on. The saga of how the Chinese stole the SU-27 plans from Russia (Licensed the fighter and planned to use Russian components and then switched to Chinese made components after a couple years) is among the ways they do it. https://en.wikipedia.org/wiki/Shenyang_J-11 https://en.wikipedia.org/wiki/Shenyang_J-11 The Russians were desperate for cash at the time and the Chinese were willing to pay. What the Russians didn't count on was the willingness to straight up steal the design and start manufacturing it in China. Companies have gotten a lot better about protecting their designs now but are up against the Chinese government.

phil21 8y ago

> I’m surprised anyone does business in China when you know 10-15 years later they will have copied your business. The Chinese market is huge - many executive types seemingly fall victim to hubris quite often - and this is no exception. That's the most charitable explanation possible. The less charitable and more realistic way this happened in my opinion? No executive cares about 10-15 years from now. At most they are looking a couple years down the road for bonuses.

nosleeptill 8y ago

Largely the "IP theft" is really "IP transfer". In order to conduct business in China, most non-Chinese companies need to partner with a Chinese owned company, that partnership requires that the IP be shared between partner companies. Each Chinese owned company already has another partner, the Chinese Government. IP shared with the Chinese company is then shared with the Chinese Government. The Chinese Government than takes the IP that has been "shared" and they re-distribute that knowledge to other Chinese companies that can benefit. The Chinese government is sitting on massive amounts of IP that was knowingly "shared" That's why it seems the technology sector in China seemed super charged, because it was. Make no mistake the Chinese government is actively trying to steal IP, but most of the IP it has was knowingly shared by Western companies desperate to lower costs and get access to the Chinese market.