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Technology: China and American Business IP
The US accuses China of long-time theft of American business intellectual property (IP). In a trade deal signed by the Trump administration with China, China pledges to stop some of the practices that they have been long criticized for. But it’s unlikely that things will change overnight.
The IP being stolen by Chinese companies are business trade secrets. It’s the kind of information that businesses often spend years in creating. The information is valuable, considered a company secret, and typically positions the company favorably with a competitive edge.
It is estimated that Chinese companies steal between $225 billion and $600 billion a year in US intellectual property.
Sen. Ben Sasse (R-Neb.), a member of the US Senate Intelligence committee, said that “these crimes – racketeering, conspiracy to steal trade secrets, and sanctions evasion – are part of Chairman Xi’s strategy to make China the world’s preeminent superpower. The United States and our allies have an obligation to stop them.”
In mid-January, phase I of a trade truce with China and the US was signed. China agrees to not force businesses to transfer technology to local Chinese companies and agree to punish local Chinese businesses that infringe on or steal trade secrets. Possibly a good start, but they are promises that will be difficult to enforce.
Despite the agreement, it still makes sense for American companies to takes measures to protect their intellectual property, trade secrets and confidential information.
