The myth of forced transfer of technology

For more than a year, the United States has been accusing China of "forced transfer of technology", an accusation that has been at the core of the US' trade dispute with China.

It is critically important to make a clear distinction between commercial deals between foreign companies and their Chinese business partners, and the acts of the Chinese government. While commercial contracts are based on agreements between foreign and Chinese enterprises, "forced transfer of technology" is related to the Chinese government. It is therefore ridiculous to regard the complaints against Chinese companies as "forced technology transfers".

As for joint ventures in China, foreign businesses are free to negotiate the terms of the contract with their Chinese counterparts. Either party can walk away if it is not happy with the terms proposed by its negotiating counterpart. Two parties enter into a contract at their own will, based on their respective calculation of the cost and benefit of their participation in a business venture. As part of a contractual relationship, technology transfer is all about meeting one's obligations under the contract. It is not "forced".