China rejects ‘tech transfer’ charge
US argument involved a presumption of guilt, says Zhang
Geneva, May 28: China told the World Trade Organisation’s (WTO) dispute settlement body on Monday that US accusations that Beijing forced companies to hand over technology as a cost of doing business in China were groundless.
US President Donald Trump has accused China of stealing American ideas and announced a plan for a $50 billion tariff penalty against Chinese goods. Both sides launched legal complaints at the WTO over the issue earlier this year.
“There is no forced technology transfer in China,” Chinese ambassador Zhang Xiangchen told the meeting, according to a copy of his remarks provided to Reuters.
“According to the US’s view, China forces the US companies to transfer technologies by imposing joint venture requirements, foreign equity limitations and administrative licensing procedures,” Zhang said. “But the fact is, nothing in these regulatory measures requires technology transfer from foreign firms.”
Zhang said the US argument involved a “presumption of guilt”. The US Trade Representative believed US firms in China faced an obligation to hand over technology, while failing to produce a single piece of evidence.
Some of its claims were “pure speculation”, he said, adding that the USTR saw Chinese M&A activity as a conspiracy.
Technology transfer was a normal commercial activity that benefited the US most of all, he said, while Chinese innovation was driven by “the diligence and entrepreneurship of the Chinese people, investment in education and research, and efforts to improve the protection of intellectual property.”
Legal experts say US needs WTO backing to implement its tariffs as far as they relate to WTO rules, while China has rejected the tariff plan wholesale and resorted to WTO action to stop it.
Legal experts say US needs WTO backing to implement its tariffs as far as they relate to WTO rules, while China has rejected the tariff plan wholesale and resorted to WTO action to stop it. According to the US’s view, China forces the US companies to transfer technologies by imposing joint venture requirements, foreign equity limitations and administrative licensing procedures — ZHANG XIANGCHEN