We've written in the past about efforts Chinese officials have made in curbing intellectual property violations. Yet preventing trade secret theft has proven to be no easy task.
To begin with, the problem is complex and seemingly widespread. And as one international publication concludes, trade dispute issues go well beyond intellectual property concerns. It's just that trade secret violations have become the trade war's focal point.
If you follow advances in technology, you already know the digital world changes tremendously in the blink of an eye. But when you’re trying to figure out where to invest your money, you might want to consider China’s digital health market.
That digital technology continues taking strides toward data privacy is no secret. And, advancements in artificial intelligence (AI) are running right alongside. The combination of the two could lead to progress in global healthcare.
As of January 1, 2019, China’s supreme court will handle intellectual property cases. This development came about as the ongoing trade war between the United States and China continues.
As a recent article asserts, both the U.S. and the European Union have ongoing concerns regarding intellectual property enforcement. This is especially true regarding forced technology transfers at the behest of Chinese officials.
With talks of trade wars between the U.S. and China, conducting business in China is becoming more difficult for American companies. This is in great part due to the Chinese government implementing tougher regulations. Chinese officials are also more likely to reject shipments after surprise inspections.
An article by Politico speaks of cherry exporters finding their shipment slowed at the Chinese border due to delays by customs. Those delays caused cherries within certain of these shipments to spoil. The length of delays in shipments also varied. And even when such inspections came to an end, there was rejection of shipments for seemingly arbitrary reasons.
There are indications that Chinese officials may provide incentives for start-up companies doing business in their country. This is certainly true in the tech industry.
Particular regions in China recently promoted venture-capital funding. In the past few years, the number of venture-capital rose dramatically in Hong Kong. As the South China Morning Star notes, this has necessitated American companies to have to adapt to this new climate.
Trade disagreements between China and the U.S. seem to center on intellectual property issues. The U.S. and a number of European countries maintain theft of intellectual property at the hands of Chinese businesses and officials is continually occurring. For this reason, many companies are reluctant to do business there.
It is too early to tell if Chinese measures to correct such issues will resolve disagreements. So far, the war of words has not let up.
There’s been a great deal of talk concerning cybersecurity rules recently issued by Chinese officials. These rules greatly concern American businesses who wish to avoid the surrendering of trade secret information and other confidential materials.
Such concerns are understandable. This is because a company’s intellectual property may be its most valuable asset. According to a South China Morning Post article, the new rule took effect on Nov. 1. This new rule allows Chinese security personnel to enter the premises of companies and copy what they feel is relevant cybersecurity information.
Even after completion of the current trade deal with China, concern over intellectual property will continue. Because of the complexities of this issue, the current trade deal will not end potential IP theft.
As a CNBC article points out, the U.S. and China will want to move forward in doing business with each other under any circumstances. Currently, the two nations agreed upon placing any trade war on hold for at least 90 days in hopes of resolving issues concerning purported theft.
If you are now conducting business in China or plan to do so soon, you will run across a phenomenon called “China speed.” It refers to the lightning-like speed with which technological change can happen in the Communist country. Especially with phones, a new model can be introduced, be dominant and then be technologically obsolete within nine months, experts say.
China speed isn’t limited to tech products, although that is where the phenomena is most prevalent. While visiting the China-Laos railway project, Lao Minister of Public Works and Transport Bounchanh Sinthavong noted that five months prior, he witnessed the opening of a tunnel that by the time of his second visit was more than 5,000 meters (more than 3 miles) long.
When American companies delay in doing business in China, it may only mean that other businesses from throughout the world will take advantage of the circumstances. American companies have been hesitant to enter into business negotiations in China. This may be a mistake since China is now the world’s second largest economy.
According to an Australian publication, many Australian businesses are about to take advantage of export opportunities that come along with doing business in China. This makes sense. Besides being a fast-growing economy, China also has over 300 million citizens considered as middle class. And there are various types of consumers in extremely large numbers.
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