Deccan Chronicle

China rejects ‘tech transfer’ charge

US argument involved a presumptio­n of guilt, says Zhang

- — Reuters

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

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