But some say partners have copied chemical
formulas, industrial processes and other secrets
for their own operations, sometimes with local
government support.
Beijing denies it forces foreign companies
to hand over technology, but joint ventures
won’t work without foreign technology and
manufacturing expertise.
In the auto industry, China has promised to lift
requirements for joint ventures and allow full
foreign ownership by 2023. Experts say that
suggests they believe Chinese automakers no
longer need foreign tutors.
LEGAL PRESSURE: Pressure to hand over
technology pervades Chinese law and action
by regulators.
Beijing promised when it joined the WTO in
2001 to treat Chinese and foreign companies
equally. But 18 years later, business groups and
governments say foreign companies still face
special burdens, including sharing technology.
The European Union filed a WTO challenge last
June to Chinese laws on technology licensing
it says discriminate against foreign companies.
It said China’s own companies are free to
negotiate licensing terms, but Beijing dictates
terms for foreign companies.
A law approved in March bans using
“administrative measures” to compel foreign
companies to hand over technology. Business
groups welcomed that but said Chinese officials
can still use other pressure tactics.
Business groups say Chinese regulators misuse
a 2008 Anti-Monopoly Law to pressure foreign
companies in negotiations on technology licensing.
Image: Francisco Seco