Chinese Business Practices Designed to Stimulate the Planned Economic Growth of China

Chinese-U.S.-business-deal

The Chinese government have started a policy referred to as “forced technology transfer” which means that “in order to do business in China, foreign business interests must give up some of their technological innovations and protected secrets”. The Chinese government refers to this process as an “indigenous innovation policy”, to ensure that Chinese companies, state owned or otherwise, remain or become the most powerful and influential industry leaders within various world economic sectors. The short version of this policy is that if a foreign company wants to work with a Chinese corporation or do business in China (e.g. selling U.S. made products in China), they must agree to do so through joint ventures with Chinese firms, and allow propitiatory technology to be shared with Chinese corporate interests and the Chinese government to encourage growth within Chinese industry as a whole. The World Trade Organization has laid out rules stating that this practice is inconsistent with what it deems fair and legal business practice, however the Chinese government has repeatedly ignored requests for these practices to halt. The Chinese state has issued statements claiming that there are no official laws in place forcing foreign companies to comply with such practices, however this is evidently untrue as multiple U.S. corporations have provided evidence to the contrary

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