China discussed a bill to prohibit technology transfer to foreign capital, making a concession in the trade war with the United States

The Chinese media reported that the Chinese government started a legislation prohibiting "technology transfer" that has been criticized as forcing foreign firms to enter China. It is believed to be a movement responding to the pressures of the American trump regime, which strongly demands intellectual property rights protection.

Japan 's petty foreign investment investment law: unfavorable use administrative measures forcible ⑴ same technology
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China drafts law protecting foreign intellectual property and prohibiting forced technology transfer | South China Morning Post
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Until now, criticism was gathered not only to require the establishment of a joint venture company when a foreign capital enterprise entered the Chinese market, but also to force technology transfer. These technical transfer requests are being carried out by local administrations, which are nominally 'arbitrary', but since they have a big influence on the decision of approval, they have been received as de facto compulsory dispositions. In addition, the Chinese government has consistently stated that "the government has not forced technology transfer so far".

On December 23, 2018 which is the first day of the National People's Congress (NPC) that is equivalent to the Japanese Diet, the New Law including the content prohibiting the act of forcibly transferring foreign capital technology regarding foreign investment protection " Investment Act "bill was submitted to the Standing Committee of the NPC to start deliberations, the People's Daily reported by the Chinese Communist Party Agency newspaper.

In the foreign investment bill on which bills announced by the Chinese Ministry of Commerce in January 2015 are the starting points, it is prohibited to prohibit local administrations from forcing technology transfer to foreign capital . China's state-owned broadcast Xinhua News Agency said, "China encourages technical cooperation based on voluntarily agreed terms and business practices.This condition should be negotiated with investors, technology transfer We are prohibiting administrative measures to enforce the law, "explains the contents of the bill. Nonetheless, "encouraging technical cooperation based on voluntarily agreed terms and business practices" refers to the current state of compulsory technology transfer measures, and it is said that it is a cold There are also views.

In addition, foreign investment bills include contents that are guaranteed to receive the same treatment as domestic investment from overseas, except for some "negative list" for which foreign investment is prohibited . As a result, when support measures for Chinese companies are launched, foreign-funded enterprises will be able to receive similar assistance.

In addition, while the Chinese government retains the right to optimize the property of foreign investors under special conditions, the procedure is legally carried out in the foreign investment bill, which obliges fair and reasonable compensation Also included.

Foreign investment bills issued in the wake of a trade war with the US government, which strongly demands intellectual property protection of American companies, include a clear message from the Chinese government to improve US-China relations It seems to be done.

However, Mr. Shu Yu-jin, a representative of the Chinese branch of the American law firm K & L Gates, is likely to establish and enforce relatively quickly the foreign investment law will be within one or two years considering the strong pressure from the United States Despite saying, the burden of proof that the technology transfer banned by the Foreign Investment Law was carried out remains challenging in China, as a plaintiff foreign investment company owes it and the penalty for violation is not enough, etc. I pointed out.