<p><pre><code> Forced-IP-transfer is a double-edged sword
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This article is about Huawei and the trade war is the larger background. I had some entrepreneurship experience both in China and the States. "Forced IP transfer policies" is one of the core issues between the US and China. I'd like to share some thoughts about this issue from the perspectives of some entrepreneur friends in China. AFAICT, the real impact of the "forced IP transfer" is very complex. I didn't see any media report about it, so I share it here.<p>The perspective from media: "Forced IP transfer policies" is very unfair because it helps Chinese companies to get an unfair advantage. It's bad for foreign companies and good for Chinese economies.<p>The perspective from many entrepreneurs in China: "Forced IP transfer policies" is very unfair because it helps the foreign companies get an unfair advantage. It's bad for Chinese private companies and economies.<p>Here is the explanation from the entrepreneurs' perspective:<p>1) The most "forced IP transfer" happened in the Chinese-foreign partnership companies.<p>2) However, the partnership is between state-owned companies and foreign companies.<p>3) Most of the state-owned companies are very inefficient. The system makes people lazy and corruptive.<p>4) The partnership companies did get some technologies, often the older technologies. However, they also get benefits from the state, very cheap land, subsidies, etc.<p>5)From the perspective of local entrepreneurs: Benefits from state + Foreign tech and brand makes the already-strong foreign companies even stronger. They get double advantages. It's very hard to compete with them. To local entrepreneurs, the Chinese state-owned companies + Foreign companies partnership model kills many local private companies unfairly.<p>6) From the technologies side, the state-owned companies get some older technologies, but since the state-owned companies have their own issues like lazy, corruption. They didn't get a tech edge in the competition. The transferred technologies outdated very fast.<p>One example is the Auto industry. Most auto brands from the US is very successful in China, for example, Buick is not very successful in the US, but the overall sales in China exceeded 10M!
Ford is also very successful in China <a href="https://thenewswheel.com/ford-sales-in-china-surpass-1-million-vehicles-in-november/" rel="nofollow">https://thenewswheel.com/ford-sales-in-china-surpass-1-milli...</a><p>Did the "transferred technologies make them less successful"? It's really hard to say.<p>There is some "forced IP transfer" in some sectors, but the impact to the overall economies may or may not positive because it makes the local private companies in a very disadvantaged position. It's really a double-edged sword.