context: Forced technology transfer is a major source of conflict between the US and China. Since it is an area where US interests align with other economies such as the EU and Japan, it is high time for China to address this problem to avoid risks of market exclusion.
The previous trend of global convergence is being replaced by increasing divergence, says Ge Jun 戈峻 former Intel China chief legal advisor, especially in technology development. Many countries are formulating their own rules which apply different standards, says Ge, citing examples of cross-border data transmission. While the US requires openness, China confines all important personal data within its borders unless they go through strict inspection.
China has shifted from import to export in capital, technology and ideology. As it grows more engaged in global rule-making, it is also becoming more involved in conflicts. China needs to safeguard rules and mechanisms working in its benefit and modify disadvantageous ones, contends Ge.
Ge acknowledges the difficulties multinationals face in China
- selective enforcement of Consumer Protection Law and Anti-monopoly Law which seems to target foreign enterprises
- market access
- China's government procurement laws restrict foreign goods and service providers from bidding except in areas where domestic capacity lags
- the negative list still employs abstract language which lacks enforcement clarity
- inconsistencies between global and domestic technology standards increases R&D and compliance costs
- operations and competition
- industrial policies that favour local businesses might produce inefficiencies and render final products less competitive
Although Cybersecurity Law aims to safeguard national security, it prevents consumers from enjoying high-quality services from overseas, says Ge, calling for legislature to balance between competing interests
- national security and technology neutrality
- industrial policy and market economy
- platform liability and individual responsibility
- fair use and IP protection