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.
There have been a wide variety of intellectual property concerns for companies doing business in China. Despite such concerns, China does appear to be taking steps to improve its reputation. Also, many American companies are acknowledging extensive growth in revenues due to doing business there.
Intellectual property protection concerns play an important part in the discussion regarding the trade war between the U.S. and China. This is because the technology and ideas a company create are among its most valuable assets.
Intellectual property is a company’s most valuable asset. Protecting trade secrets keeps others from stealing their profits. It also allows companies to compete. For this reason, concerns about IP theft taking place in China need to be taken seriously.
China’s top lawmaking body is considering the establishment of a Supreme People’s Court to hear appeals on patent and other intellectual property rights.
The trade war against China has affected numerous industries, American and Chinese alike. While the automotive and retail industries have taken the hardest hits, there is another field that is facing unexpected consequences because of tariffs: Tourism.
According to a CNBC article, China’s attempt to modernize the economy may face obstacles due to trade war talks. Such tensions are forcing China to rethink its economic strategy.