Not in China's interests to force technology transfers: China Daily editorial

The United States has repeatedly claimed that China has forced foreign companies to transfer their technologies to local businesses, an accusation that it has not backed up with evidence.

US officials, including President Donald Trump, have claimed that China has exploited "vague" investment rules to force foreign companies to share technology with their Chinese partners if they want to access the Chinese market.

But this allegation is being used as an excuse to facilitate its trade protectionism and coerce China to accept other economic demands by the US. As Chinese Ambassador to the World Trade Organization Zhang Xiangchen said on Monday at a WTO meeting, the Office of the United States Trade Representative has failed to produce "a single piece of evidence" to support its claim.

It is easy for the US to point its finger at China in this way as there have been technology transfers between the US companies and their Chinese partners. But these are the result of normal business practices, not coercive policies.

As Zhang said on Monday, although the US claims China is forcing US companies to transfer technologies by imposing joint venture requirements, foreign equity limitations and administrative licensing procedures, "nothing in these regulatory measures requires technology transfer from foreign companies". If a US company thinks a deal is not worthwhile, it can choose not to proceed with it.

The Chinese authorities have also made continual progress in strengthening intellectual property rights protection. Reflecting this, China's payment of licensing fees and royalties for the use of foreign technologies has soared in recent years. According to calculations by the Peterson Institute for International Economics, they reached almost $30 billion in 2017, nearly four times the level of a decade ago.

The institute further pointed out that China ranks fourth globally in the amount of licensing fees paid for acquiring foreign technology, ahead of such developed economies as Japan, Singapore, and the Republic of Korea.

And to try and force companies to transfer their technology would not cater to China's interests since it would deter foreign investment, which is very important for the country's economic development.

China is committed to opening its doors wider and improving the environment for foreign investment. Instead of being at each other's throats, the two sides should seek to properly manage their differences and jointly promote the sound and stable development of their economic relations and trade.