Chinese ambassador: US enterprises technology transfer in China is forced by market competition
Updated: 2018-11-27 16:44
US companies' technology transfer is forced not by the Chinese government or Chinese companies, but by market competition, Chinese Ambassador to the United States Cui Tiankai stated in an interview with Wall Street Journal, according to the website of the Chinese embassy in the US.
For some of the cases of transfer of technology, it’s not forced transfer. Very often it’s a commercial deal between Chinese companies and US companies, because Chinese companies have their local sales network. The US companies have technology. So they want to make a deal between them. Each relies on its so-called comparative advantage, Cui said.
Besides such interaction between Chinese and US companies, there is also fierce competition between US companies and other foreign companies, Cui stated. For instance, all the major car makers — American, European, Japanese — are competing with each other in China. So if US companies don’t bring their best model, their best technology to the cars they are making in China and selling to the Chinese consumers, they might lose their market share to the Europeans and Japanese car-makers.
US companies' technology transfer is forced not by the Chinese government or Chinese companies, but by market competition, Chinese Ambassador to the United States Cui Tiankai stated in an interview with Wall Street Journal, according to the website of the Chinese embassy in the US.
For some of the cases of transfer of technology, it’s not forced transfer. Very often it’s a commercial deal between Chinese companies and US companies, because Chinese companies have their local sales network. The US companies have technology. So they want to make a deal between them. Each relies on its so-called comparative advantage, Cui said.
Besides such interaction between Chinese and US companies, there is also fierce competition between US companies and other foreign companies, Cui stated. For instance, all the major car makers — American, European, Japanese — are competing with each other in China. So if US companies don’t bring their best model, their best technology to the cars they are making in China and selling to the Chinese consumers, they might lose their market share to the Europeans and Japanese car-makers.