It appears that China is working on a law on foreign investment that would regulate the outlawing of forced technology transfers.
For years, China's bet has been to attract the maximum foreign investment with almost free labor. The country is now changing its strategy and is betting on giving better salaries and betting on new technologies. A few days ago it was published that China has been teaching Artificial Intelligence since children. The next step appears to be a new law on foreign investment. This new rule would make forced technology transfers illegal. This is how they respond to US protests and could ease the tariff war between the two countries.
China is working to create a new technology transfer law.
It has been the local media who have reported on the study of this new rule. It is currently in draft form and requires the prohibition of the law that "obliges foreign companies to transfer technology or illegally restrict their access to the market."
It has been interpreted in part as a move by Beijing to draw closer to the United States and other countries. The claim of other states for this rule and the like has been requested for years. This would be a solution to the commercial battle between the two countries that hurts the whole world. Above all, it is starting to hurt the US economy, which is already feeling the tariffs. This problem is also spreading to other countries.
“A wide range of experts and market observers agree that China has repeatedly forced foreign multinational corporations to transfer technology to local companies as a condition for market access and that China has failed to protect Intellectual Property. of foreign companies doing business in China, ”writes Lee Branstetter, professor of economics and public policy at Carnegie Mellon University.
Source: HOCP
