Following the United States Government move to investigate China’s involvement in the theft of intellectual property, a lot of speculations have been cast on its impact on small businesses with IP rights. We have looked at the possible outcome scenarios of the move. If you are interested in doing business in China, you are at the right place to learn a few tips and ideas that you may need to succeed. Information is crucial for the success of every business.
Room for Negotiations
It will take some time for immediate results of the section 301 investigation to be seen. According to some of the senior administration members, the investigation requires at least a year for completion. This gives enough time for both China and the United States to negotiate, and conduct public hearings.
China’s foreign ministry has already signaled their readiness to retaliate making US businesses and especially farmers concerned. In their response, the Chinese government has defended themselves saying that they have made tremendous steps in ensuring their laws protect business ideas. This reiterates the fact that when it comes to trade, no side is willing to lose, and negotiations are paramount.
Open Secure Markets for Both Countries
Currently, the Chinese firms enjoy secure access in the United States. with IP rights could benefit from the probe as talks could open new markets in China. The move could also end the Chinese intellectual property law that requires foreign firms to transfer intellectual property rights.
The US Chamber of Commerce hinted that the pursuit of intellectual property rights to be preserved and protected beyond borders remains vital. Economists have already started speculating the effects of the US-China trade wars could lead to high inflation rates in the United States.
Others of a contrary opinion see it as an opportunity for intellectual property rights for business in China to be safeguarded.While the debate continues to unravel, there are concerns from small US businesses operating in China.
Some companies are worried about their ability to protect intellectual rights, and how to resolve conflicts arising. It is crucial for such companies to seek advice from U.S – China business attorneys.