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How China gets what it wants from foreign companies

Avatar of Nick John By Nick John Dec19,2023 #China #companies
How China gets what it wants from foreign companies 4
How China gets what it wants from foreign companies 4

Some large American companies, such as GM or Qualcomm, sell more products in China than anywhere else in the world.

However, the Chinese Government is increasingly facing more pressure regarding the country’s requirements for foreign companies wanting to be present here.

Foreign companies have long complained that China wants them to hand over trade secrets in exchange for access to the market.

Training future opponents

A car model of Geely (China) at an exhibition in Russia in 2016. Photo: AFP

This is the situation in the car industry, where many leading brands such as GM, Volkswagen and Toyota have to cooperate with Chinese competitors, if they do not want to pay high taxes on imported cars.

Foreign automakers are `training future competitors, and only receive a small portion of what intellectual property rights bring` if they are allowed to operate independently in China, said Mary Lovely – professor at

Because of this policy, `It’s not surprising that some domestic Chinese brands resemble American and European models,` said Scott Kennedy – China expert at the Center for Strategic and International Studies.

New technologies

The race to develop unique technologies for electric devices also increases this concern.

Foreign companies often have to `make difficult decisions about the trade-offs between technology sharing and market access,` Parker observed.

The actual number may be even higher.

Companies that refuse are left on the sidelines and forced to pay high import taxes when bringing goods into China.

Boeing’s success

Of course, everything has exceptions.

China is currently Boeing’s largest market, after the US, contributing nearly $12 billion in revenue to the company last year.

How China gets what it wants from foreign companies

China’s ARJ21 aircraft on its first commercial flight.

They have a factory in partnership with the Commercial Aircraft Corporation of China (COMAC), but only do the finishing touches, like installing seats or carpeting.

The reason may be that China needs Boeing planes to serve the rapidly growing aviation industry here.

Unlike cars, China’s aircraft manufacturing industry faces many difficulties in competing with foreign competitors.

Even if Beijing proposes a 25% import tax on US aircraft, Boeing may not be affected.

Beijing’s argument

Many foreign companies that have established a foothold in China are also dissatisfied with the process here.

Chinese officials have always denied this and affirmed that the information in the report of the Office of the US Trade Representative on intellectual property theft is `unfounded`.

“We are ready to consider specific cases if there is any violation of intellectual property…We are ready to resolve these issues according to our laws,” said Cui Tiankai – Chinese ambassador to

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