May 25, 2018

Rude, red awakening: China’s theft of U.S. tech is hard to stop

Featuring Abigail Grace

Source: Axios

Journalist Erica Pandey

Washington is waking up to the reality that the cost of doing business in China's massive market is risking precious tech secrets, but it may be too late.

The big picture: Rogue practices like intellectual property theft are built into Beijing's industrial policy, and China has used these policies to innovate so rapidly that it may soon be able to cut its reliance on the West.

The uncrackable Chinese market

Major U.S. companies like Facebook, Google, Amazon and Uber have all been relatively successful in foreign markets, but none have been able to crack China. That's no coincidence.

  • China sets up barriers to entry, like giving its state-run companies exclusive access to capital and forcing foreign companies to transfer their technology to local partners.
  • It's worth noting that if U.S. firms want access to Japanese and South Korean markets, they also have to transfer technology to those countries.


Read the Full Article at Axios

  • Abigail Grace

    Research Associate, Asia-Pacific Security Program

    Abigail Grace is a Research Associate in the Asia-Pacific Security Program at the Center for New American Security (CNAS). Her work focuses on U.S. strategic competition with ...