China rejects US accusations of technology transfer as baseless

Beijing. May 30. Silkroadnews – China’s Ambassador to the World Trade Organization (WTO) Zhang Xiangchen rejected the U.S. accusations that China is abusing the requirements for joint ventures on technology transfer, Xinhua reports.
Zhang spoke at the session of the WTO Dispute Settlement Body (DSB), in response to the U.S. statements that China’s policy makes the foreign companies to transfer technology to Chinese companies.
“The transfer of technology from the U.S. companies to China is a normal business. It is done based on mutually agreed terms between the businesses, and such transactions represent the companies' own will,” the agency quoted Zhang saying. He also added, that the commercial considerations principles, freedom of contracting and market competition are fully respected in these transactions.
The Chinese diplomat noted that the United States is the largest beneficiary of technology transfer, and China, as a developing country, is one of the main export destinations for American technology.
“The U.S. accusation that China has abused the joint venture requirements, foreign ownership restrictions and administrative discretion to achieve forced technology transfer, is neither based on evidence nor convincing,” he said.
Zhang noted, during the investigation the U.S. did not find evidence that Chinese laws provide for the transfer of foreign technology to Chinese partners, and also did not provide evidence of alleged violation of China’s obligations not to use technology transfer as a prerequisite for foreign investment to access its market.
In April, the Trump administration decided to impose tariffs on a number of Chinese goods worth $50 billion on the basis of an investigation under Section 301 of the 1974 Merchant Act in connection with the alleged practice of infringing intellectual property and technology in China.
In turn, China has submitted a request for consultations within the framework of WTO dispute settlement.