Communist China’s Latest Intellectual Property Con: Stealing IP Creation

Looking to Get IP to Follow
Manufacturing Inside the Great Wall

by Seton Motley: Communist China is not a nice place. Because…Communism.

Amongst its oh-so-many awful deeds – Communist China is a world-renowned den of intellectual property (IP) thieves.

Forget Tariffs, China’s Alleged Intellectual Property Theft a Bigger Threat to Market

China is an “alleged” IP thief – the way Don Juan was an “alleged” fan of women.

How Much Has the US Lost from China’s IP Theft?: “The United States Trade Representative, which led the seven-month investigation into China’s intellectual property theft and made recommendations to the Trump administration, found that ‘Chinese theft of American IP currently costs between $225 billion and $600 billion annually.’ Those numbers are in line with a 2017 report from the Commission on the Theft of American Intellectual Property.”

That’s a lot. Thankfully – after decades of our pretending Communist China isn’t…Communist China – we have elected a president who is in touch with Reality.

(Donald) Trump’s Actions Send a Clear Message: China’s Era of Intellectual Property Theft Is Over

Communist China, of course, knows the right things to say and do – so as to assuage the neglectful world community.

China Launches Campaign to Protect (Intellectual Property Rights) IPRs of Foreign Companies

But this is the set-up of yet another Communist China con. Here’s hoping Team Trump isn’t fooled – and keeps doing exactly what they’re doing to clean up our IP mess.

Decades of international enforcement abandonment – combined with a decade-plus of horrendous domestic policy – has severely damaged the United States as a safe haven for IP.

So much so – that we have now dropped out of the top ten on the list for best places for IP investment and development.

Enter the Communist China IP con.

Read carefully what China is saying about IP – and it becomes clear what they are really doing.

Which is setting themselves up to be the recipient of the massive investment coin that will leave the US – as our IP protection continues to deteriorate.

What China is establishing – is the latest version of their China First protectionism.

China has spent the last several decades doing this to other US economic sectors – most notably manufacturing. The IP pattern and plot-line…is disarmingly similar.

The US spent decades imposing all sorts of stupid, expensive government policies on domestic producers. High taxes and countless regulations – followed by even higher taxes and even more regulations.

Thereby making US domestic production…heinously unattractive.

Meanwhile, we allowed China to impose all sorts of impediments to our products entering their market. High tariffs and low import limits – followed by even higher tariffs and even lower import limits.

All the while, our government imposed relatively little government of any kind on imports. As but one of billions of examples: As Trump Tweeted, a car entering the US market – pays a 2.5% tariff. The same car entering China’s market – pays a 25% tariff. Because that’s equitable and fair.

Oh: And if US companies want to do business in China – China demands they hand over their technology and IP. Because that’s fair. Also about which we have done…absolutely nothing.

All of which makes US domestic production…even more heinously unattractive. And moving instead out of the US and into China…more and more alluring.

So US companies have spent the last several decades – making sense. Taking millions of manufacturing jobs out of the US – and into China. Because math.

And this blueprint – is exactly the model China is looking to replicate with IP.

For China – so far, so good. In no small part because we are replicating our stupidity.

We have spent the last decade-plus passing really stupid anti-IP laws.

And the Barack Obama Administration came up with a whole new, titanically stupid way to attack IP.

Federal Trade Commission Files Antitrust Lawsuit Against Qualcomm

Let us pause here for but a moment. Did you get that?

What is a patent? Merriam Webster says: “(T)he exclusive control and possession of a particular individual or party.”

So the Obama government attacking patent holders under antitrust law is – on its face – absolutely ridiculous.

But for China – it is policy worth emulating. Because China has Huawei – a Qualcomm competitor. So…even more protectionism. Help Huawei – by punishing Qualcomm.

Qualcomm Fined $975 Million in China

So let’s check the tally. All of our dumb domestic policy. Combined with China’s massive, ongoing, unaddressed IP theft. And…surprise – we’re no longer in the IP top ten.

China wants the hundreds of billions of IP investment dollars – we seem so intent on driving away.

So they are very publicly setting themselves up as an IP safe haven – if you’re located in China, that is.

That is what is really behind all of China’s public IP proclamations.

So we get statements like this: “‘Stronger IPR protection is the requirement of foreign enterprises, and even more so of Chinese enterprises,’ (Chinese President) Xi said.…”

And stories like this:

China Establishes 19 Intellectual Property Protection Centres: “China has established 19 intellectual property protection centres and will continue to provide more efficient and low-cost rights protection channels, Shen Changyu, head of the State Intellectual Property Office, declared on Tuesday.”

And more completely ridiculous statements like this: “Shen pointed out that the results of the Section 301 Investigation of China by the US ignores the objective facts that China has strengthened intellectual property protection, and has always insisted on the equal treatment of intellectual property rights of both domestic and foreign enterprises.”

“China…has always insisted on the equal treatment of intellectual property rights of both domestic and foreign enterprises”…? Ladies and Gentlemen – your Joke of the Day.

Bet this: Communist China is tightening up IP protection – for Chinese companies. And only Chinese companies.

And inviting the US and the world’s IP creators – to become Chinese IP creators. And bring their hundreds of billions of investment dollars with them.

Which would be outstanding…for Communist China.

And absolutely destructive and awful for the US – and everyone else on the planet.
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Seton Motley is the President of Less Government and he contributes to ARRA News Service. Please feel free to follow him him on Twitter   /   Facebook.

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