Wednesday, February 02, 2011

Another Reason Why I Am Amazed American CEOs Want To Do Business In China

I saw it first hand over the past few years - China, acting through its government and corporations (which are largely controlled by government officials or military) - is actively seeking to steal any U.S. technology they can get their hands on.  And they will do it any way they can.

Others are finally starting to notice, as published today in the WSJ: U.S. Firms, China Are Locked in Major War Over Technology

China's bureaucrats have been rolling out an array of interlocking regulations and state spending aimed at making their country a global technology powerhouse by 2020.

The new initiatives—shaped by rising nationalism and a belief that foreign companies unfairly dominate key technologies—range from big investments in national industries to patent laws that favor Chinese companies and mandates that essentially require foreign companies to transfer technology to China if they hope to sell in that market.

Many U.S. executives are rushing into China, seeing the "huge market" while giving up their intellectual property, trading long-term viability for short-term profit.  These same executives then go hat in hand to the U.S. government, asking for various gimmies to make the U.S. "more competitive".

It's no wonder the U.S. is falling behind.

1 comment:

Anonymous said...

A few weeks ago I attended an all-day seminar (from the UW) on doing business in China. Story after story talked about the corruption, inherent nationalism, and pressures of the government at all levels. I came away thinking the businesses were screwing themselves in the long run.