China Is Considering a Law to Make Forced Tech Transfers Illegal

cageymaru

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China is reportedly considering a law that would make it illegal to force foreign investors to transfer technology to China. This law would "ensure foreign investors enjoy equal treatment with domestic counterparts in China, except in those excluded areas specified in a negative list." The government will review the law on Sunday during its bimonthly meeting. The law will send a strong signal that China is determined to open its markets and protect foreign investor's interests.

The draft law also stipulates that foreign businesses' intellectual property will be protected, and their profits in China can be freely transferred out of the country. The law, if adapted, is expected to replace three existing laws on Chinese-foreign equity joint ventures, contractual joint ventures and wholly foreign-owned enterprises, Xinhua said.
 

Nukester

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riiiight.jpg
 

Lakados

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Reactionary laws are rarely good ones, the Chinese economy is is a bit of a slump and many of their manufacturing plants are falling behind automation wise. Investors are choosing to build new facilities in India where it is cheaper and they dont have to worry (as much) about IP theft and the courts have shown themselves as impartial in cases between local and foreign entities.
 

Madoc

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Well, that's a relief. We should move all of our high tech research and manufacturing techniques over there now.
 

Reimu

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It's empty words at this moment. Frankly, some kind of treaty is needed at the very least for any of us to give this another look.
 

TordanGow

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Surprised this is even a thing. If I was told that I needed to hand everything over to them I'd tell them to gtfo and that I'll manufacture/produce my products elsewhere.
 

westrock2000

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When China was ramping up they only had up to go. And they could afford to do anything it took to move up.

But as the country and it's people become more successful and their standard of life increases, they will start to become cautious of their surroundings. China has a lot more to lose today than it did 30 years ago. People will start demanding safety mechanisms to protect their way of life. One way to protect themselves is by agreeing to rules that make the playing field fair.

If you look at the Industrial Revolution of America and Europe you can either view it as a unique outcome or as the normal outcome. As more countries go through the same revolution, the results will show if it's unique or normal. I think it's normal. China was able to move through it quicker because there was already a foundation set by America and Europe but their people and companies will experience the same desires. More regulations for financial stability, safer work conditions, cleaner environment and standard of living. It came naturally to us, I don't see any reason to think it won't come naturally for them.
 

Reimu

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When China was ramping up they only had up to go. And they could afford to do anything it took to move up.

But as the country and it's people become more successful and their standard of life increases, they will start to become cautious of their surroundings. China has a lot more to lose today than it did 30 years ago. People will start demanding safety mechanisms to protect their way of life. One way to protect themselves is by agreeing to rules that make the playing field fair.

If you look at the Industrial Revolution of America and Europe you can either view it as a unique outcome or as the normal outcome. As more countries go through the same revolution, the results will show if it's unique or normal. I think it's normal. China was able to move through it quicker because there was already a foundation set by America and Europe but their people and companies will experience the same desires. More regulations for financial stability, safer work conditions, cleaner environment and standard of living. It came naturally to us, I don't see any reason to think it won't come naturally for them.

There's significant differences in how that the level of control the Chinese government has on the general population. Frankly, the way how China has centralized its power is more akin to the French with its massive bureaucracy than the Anglo-American model of private-public partnership, to the point that China.inc is one massive state-owned for-profit enterprise (for lack of better descriptions).
The Chinese has never had this national myth of checks and balances which the Anglo-Saxons invoke so frequently; there is no equivalent to the reverence of the Magna Carta in Chinese parlance, which means that due legal process is not some God-given right to the Chinese. As such, the balance of power through the Chinese lenses have always rest in the state bureaucracy. Frankly, the state bureaucracy led by court Mandarins have the bulwark and vanguard to the Chinese civilization.
You may think that Chinese today are driven by their business magnates, but I would counter by asserting that their giants of industry are all rank and file members to the party "state within a state".
 

westrock2000

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There's significant differences in how that the level of control the Chinese government has on the general population. Frankly, the way how China has centralized its power is more akin to the French with its massive bureaucracy than the Anglo-American model of private-public partnership, to the point that China.inc is one massive state-owned for-profit enterprise (for lack of better descriptions).
The Chinese has never had this national myth of checks and balances which the Anglo-Saxons invoke so frequently; there is no equivalent to the reverence of the Magna Carta in Chinese parlance, which means that due legal process is not some God-given right to the Chinese. As such, the balance of power through the Chinese lenses have always rest in the state bureaucracy. Frankly, the state bureaucracy led by court Mandarins have the bulwark and vanguard to the Chinese civilization.
You may think that Chinese today are driven by their business magnates, but I would counter by asserting that their giants of industry are all rank and file members to the party "state within a state".

Totally agree with you. I think you're right about the present and past. My thoughts were geared towards the future, where individuals in China will be able to observe other individuals in other countries. As their quality of life improves they may look at America or western societies in general (but America being the most profound example) and thinking "hey, this right to self determination thing sounds kind of cool".

China has the odds of history stacked against them in regards to being a communal society and then also being financially successful. Countries like Norway, Sweden, and Denmark are often cited as being Socialist countries that work well, but they are not Socialist countries. They are countries that have been able to implement socialist like policies through the very carefully and crafted use of free markets and free trade.

I guess my argument was that, if the Chinese individuals continue to enjoy self value, eventually they will, hopefully, start to demand value of the self. At which point, would be an opportune moment for the CIA to implement regime change. So it all works out in the end for our favor......
 

Reimu

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Totally agree with you. I think you're right about the present and past. My thoughts were geared towards the future, where individuals in China will be able to observe other individuals in other countries. As their quality of life improves they may look at America or western societies in general (but America being the most profound example) and thinking "hey, this right to self determination thing sounds kind of cool".

China has the odds of history stacked against them in regards to being a communal society and then also being financially successful. Countries like Norway, Sweden, and Denmark are often cited as being Socialist countries that work well, but they are not Socialist countries. They are countries that have been able to implement socialist like policies through the very carefully and crafted use of free markets and free trade.

I guess my argument was that, if the Chinese individuals continue to enjoy self value, eventually they will, hopefully, start to demand value of the self. At which point, would be an opportune moment for the CIA to implement regime change. So it all works out in the end for our favor......

That was the initial argument made to admit China into WTO. The problem we have today is that the state apparatus has gambled on delivering a good enough quality of life to the point that the people would just leave things be, which has been the typical developmental model of Chinese societies since about the European dark ages chronologically.
Come to think of it, the Chinese have a narrative of unbroken cultural continuation even if that is only a myth, making them constantly seeing mirror parallels in Imperial dynasties to the modern day. Referencing the founding fathers is child's play for them when they internalize politics of say Caracalla and Justinian with their reality reality.
 

Anemone

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Currently, no matter what their legal requirements, IP theft is rampant and checks are unenforced in China. Within China is creates a level of distrust of even their own self produced products (can we trust that brand is really genuine?) While government progress would be a good idea. The demonstration that the status quo is changing is going to have to be shown to the world, not talked about with legal press releases. So I'll think positively but the current state has gone on so long, and is so bad, that really the burden is on China to demonstrate a working and enforced changed of what is almost referred to as a cultural norm. In an economy that is having serious problems the odds aren't good on change becoming enforced. But we'll see.
 
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