White Paper: US Accusing China of IP Theft, Forced Technology Transfer Utterly Unfounded

The State Council Information Office, on June 2, released a white paper, titled China's Position on the China-US Economic and Trade Consultations, elaborating the China-US economic and trade consultations and stating China's position. The Paper contains about 8,300 words and is composed of three parts on top of the preface and conclusion, namely, Economic and trade friction proved by the US damages the interests of both countries and of the wider world, US has backtracked on its commitments in the China-US economic and trade consultations and China is committed to credible consultations based on equality and mutual benefit. Here are some of the excerpts from the White Paper.

Historical records confirm that China's achievements in specific and technological innovation are not something we stole or forcibly took from others; they were earned through self-reliance and hard work. Accusing China of stealing IP to support its own development is an unfounded fabrication.

Turning a blind eye to China's unremitting efforts and remarkable progress in protecting IP and improving the business environment for foreign investors, the US issued a myriad of slanted and negative observation, and imposed additional tariffs and investment restrictions on China, provoking economic and trade friction between the two countries.

China is fully committed to IP protection. It has established a legal system for the protection of IP that is consistent with prevailing international rules and adapted to China's domestic conditions. China values the leading role of judicial measures in protecting IP, and has achieved impressive results. The understanding of the importance of IP among the general public and business community in China has increased, the value of royalties paid to foreign rights-holders has risen significantly, and the number of IP applications and registrations has surged. The effective impact of China's IP protection has won international recognition.

The White Paper also quoted the views of the American Chamber of Commerce. In its 2018 China Business Climate Survey Report, the American Chamber of Commerce in China noted that among the main challenges facing its member companies operating in China, concern over IP dropped from 5th place in 2011 to12th place in 2018. An article in The Diplomat predicted that China will become a leader in global IP. Many of the concerns raised by foreign firms doing business in China have already been addressed through judicial reform and a strengthened enforcement mechanism.

In terms of some key innovation indices, China is already among the world's leading players. In 2017, total R&D investment in China reached RMB 1.76 trillion, ranking second in the world. The number of patent applications reached 1.382 million, ranking No.1 in the world for the seventh consecutive years. The number of invention patents granted reached 327,000, up by 8.2 percent year-on-year. China ranks third in the world in terms of valid invention patents held.

China has always pursued international technical cooperation with mutual benefit and win-win as the basic value orientation. China encourages and respects voluntary technical cooperation between Chinese and foreign firms based on market principles. It strongly opposes forced technology transfer and takes resolute action against IP infringement. Accusations against China of forced technology transfer are baseless and untenable, the White Paper stressed.

(Source: China IP News)