Chinaโs tech transfer problem is growing, EU business group says โ Reuters
What happened: European businesses in China have reportedly been facing greater pressure to transfer technology to local companies. The European Union Chamber of Commerce in China said on Monday that 20% of the 585 participants reported forced technology transfer to maintain market access in an annual survey, an increase from 10% seen two years ago. In certain โcutting edgeโ industries the incidence of reported transfers was as high as 30% in chemicals and petroleum, for example, and 28% in medical devices, said European Chamber Vice President Charlotte Roule.
Why itโs important: The report echoes the US investigation into Chinaโs alleged forced technology transfer under Section 301 of the Trade Act of 1974 which started two years ago. The Communist Partyโs mouthpiece Peopleโs Daily said in a commentary published Saturday that the Washingtonโs accusations on the issue were โpurely fabricatedโ without any evidence. China has long been accused of adopting unfair legal practices requiring foreign enterprises to hand over technology to gain access to the worldโs second-largest economy. Chinaโs central government tried to reassure foreign investors by passing the Foreign Investment law in mid-March during the countryโs Two Session meetings. The new law, which will take effect on Jan. 1, 2020, prohibits use of administrative measures to force technology transfer.
