China squeezing foreign companies for their technology

Discussion in 'Economics & Trade' started by kazenatsu, May 21, 2019.

  1. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Looks like China is squeezing foreign companies with factories in China for their technology.

    Times Magazine has a great article about it:
    More Companies Feel Pressured to Hand Over Technology in China, Report Says (May 20, 2019)

    So if a company from the US wants to set up a factory in China (to take advantage of lower cost of labor) it comes at the cost of handing over their technology in that factory.

    This isn't altogether just a fair and open scheme. Many of those companies made huge investments in those factories, and then Chinese regulators come in and threaten to shut the factories down if they don't get what they want. It's not like these companies agreed to the terms before they set up operations there.

    These are dirty tactics. China is essentially stealing the intellectual property and research investment of companies based in more advanced countries.

    But once they do that, they'll just copy everything and won't need these foreign companies to run the factories. So ultimately, in the long-term, it's self-defeating.
    There is a very real argument to be made that it's not in the national self-interest of countries like the US to allow this to happen and give up their technological edge. Advanced countries spend a lot of public money to foster the kind of research that leads to high technology development in private industries. And if China steals the country's innovation, the US won't have much left.
     
    Last edited: May 21, 2019
  2. DennisTate

    DennisTate Well-Known Member Past Donor

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    China's desperation over their highly precarious position as a major "economic powerhouse" is explained after the twenty minute mark in the brilliant audio video with Mr. Jim Rickards. If you haven't heard this yet....... I am almost certain that you will find this surprising.

    Do you know how many White Elephants China has been building?

    Do you know what percentage of their economy is in construction?


    FORGET IRAN, IRAQ, UKRAINE
    THIS IS WHERE WWIII STARTS...
     
    Last edited: May 30, 2019

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