The Wall Street Journal reports on a plan by China's Ministry of Industry and Information Technology to force foreign auto makers to hand over electric car technologies in ventures where they would have only minority stakes.
The draft suggests that the government could compel foreign auto makers that want to produce electric vehicles in China to share critical technologies by requiring the companies to enter joint ventures in which they are limited to a minority stake, the executives say.
The plan is "tantamount to China strong-arming foreign auto makers to give up battery, electric-motor, and control technology in exchange for market access," says a senior executive at one foreign car maker. "We don't like it."
The United States let China join the World Trade Organization, granted China Most Favored Nation status, and let China run a huge trade surplus with its exports to the US. Now China wants to force American, European, and Japanese car makers and suppliers to hand over huge amounts of intellectual property that is key to their future competitiveness. Cheeky.
It was supposed to be okay to have lots of US factories shifted to China because we'd still make lots of money off of intellectual property. This is the Chinese way of saying they want it all. Will they also insist on owning the mines and farms that produce raw materials and farm products that they import?
So will the US Congress stand idly by while the Chinese implement this policy? I'm expecting complaints but no substantial policy responses.
|Share |||By Randall Parker at 2010 September 25 03:05 PM China|