Homepage / Technology / Wilbur Ross: American genius is under attack from China
Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “gerçek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals Why Choose VDR Software? The Power of Business Software The Benefits of a Software Board Online Data Room Review The Importance of Tech Knowledge Improving Accuracy of Financial Data Online Business Records – How to Keep Your Online Business Records Accurate and Secure What is a Board Portal De? DealRoom Review – A Review of VDR Software M&A Due Diligence for Private Companies The Virtual Data Room Review


Wilbur Ross: American genius is under attack from China

The US Department of Commerce houses the patent and trademark office, whose mission is to protect our nation’s innovators and their intellectual property. Above our entrance is inscribed a quote from Abraham Lincoln: “The patent system added fuel to the fire of genius.”

But today the American patent system and the American genius it protects are under serious attack.

Intellectual property theft and expropriation costs US businesses as much as $600bn a year, according to the Commission on the Theft of American Intellectual Property.

Receive 4 weeks of unlimited digital access to the Financial Times for just $1.

Think of what that means — more than 3 per cent of America’s gross domestic product is lost each year to theft, piracy and espionage. China is a primary culprit: it accounts for 87 per cent of all counterfeit goods seized at the border.

But this shocking statistic fails to capture the deeper danger posed by the manner in which Chinese companies and the Chinese government treat America’s intellectual property.

China has announced a “Made in China 2025” plan to dominate in the production of semiconductors, artificial intelligence, autonomous vehicles, biotechnology and every other high-tech industry likely to drive economic growth beyond 2025. The US, which remains the most innovative country in the world, stands firmly in China’s path.

But rather than building a globally competitive free market economy in order to compete, China has chosen instead to compel American companies that want to operate in China to turn over proprietary technology and intellectual property.

China does this by making joint ventures with Chinese companies a prerequisite for market access; by limiting American ownership to 50 per cent or less of most enterprises in China; and, in some cases, by requiring technology transfers as part of product sale contracts.

The Beijing government and Chinese companies also pursue an investment strategy whereby they identify US start-ups with scientific breakthroughs and then make investments in those companies on better-than-market terms. The primary consideration in this investment is not rate of return, but the capture of new technologies, which the Chinese then use for other purposes.

Through investments like this, Chinese companies gain access to breakthrough technologies that could create billions of dollars of future revenues without paying royalties. An initial overpayment of a few million dollars is very important to the American high-technology start up, but is a rounding error relative to China’s multibillion dollar long-term objectives of technological superiority.

The Chinese actively search for those US companies that pioneer the technologies that China lacks. They then carefully target those companies in order to acquire their expertise. Meanwhile, companies seeking access to the Chinese market or to Chinese capital are pressured into turning over their patents, their most advanced research, and their know-how.

The offensive against American intellectual property does not end there. Less well known are the efforts of Chinese lawyers to initiate antitrust actions in Chinese courts to invalidate patents on the theory they create illegal monopolies. Think of how counterintuitive that is. The whole idea of a patent is to reward the inventor with a period of exclusive rights to the invention. A legally granted monopoly is no justification for an antitrust proceeding. But China is willing to go to great lengths to capture American technologies.

On Monday, President Donald Trump will direct Robert Lighthizer, the US trade representative, to determine whether to formally investigate Chinese policies, practices, or actions that may be harming US companies’ intellectual property, innovation and technology by encouraging or requiring the transfer of technologies to China.

Through this directive, President Trump is fulfilling another campaign promise to consider all appropriate tools to address Chinese trade activities that may be harming American economic interests. He is the first president to take any meaningful steps toward dealing with this hugely important issue.

Through this action he takes the necessary strategic step to protect the base of innovation that has fuelled American productivity and undergirded our national security for decades.

Technological advances will shape our future and, under President Trump’s watch, our innovators will reap the rewards for their willingness to take risks and invent new products and services that make America the most innovative country in the world.

Our allies and partners who share our commitment to innovation and value open competition are also harmed by China’s activity. They should be equally alarmed. We will protect our intellectual property first, but will also lead in restoring the rules-based free and fair economic system.

More from the Financial Times:
Wellbeing moves into the workplace
Cybercrime: how safe is our money in a cashless world?
North Korea backs away from Guam strike threat

Source: Tech CNBC
Wilbur Ross: American genius is under attack from China

Comments are closed.