Alert on the forced transfer of technology to the Chinese regime

The number of foreign companies they feel compelled to provide technologies to the Chinese regime in exchange for access to the Asian giant's market It has doubled in the last two years, despite official commitments to put an end to this pressure, a group of companies reported on Monday.

The phenomenon was one of the reasons for the tariff dispute between US President Donald Trump in Beijing.

The report of the European Chamber of Commerce in China collected ongoing complaints about the "forced technology transfer", which according to China's trading partners breach of market opening commitments despite denials and promises of change.

In addition, European governments have questioned Trump's strategy against Beijing for its technological ambitions, although they share US criticism.

One in five companies surveyed in January, before the latest round of tariff increases imposed by the US and China, said they felt obliged to provide the technology, against 10% in a survey of 2017stressed the European chamber. Thus, the number of signatures pressed has doubled.

"This is not something that has stayed in the past. Continue now"Charlotte Roule, vice president of the institution, told reporters before the release of the report. Putting an end to this practice, he said, "should be a priority".

The proportion of companies that reported having to share technology was higher in some areas: 30% in the oil and chemical industry, 28% in medical devices, 27% in pharmaceuticals and 21% in the automotive industry. A quarter of these companies said that transfers were still ongoing at the time of the survey.

Chinese authorities deny that foreign companies are required to provide their technology. But companies in sectors such as automotive or electronics that wish to operate in China must become minority partners in joint ventures with state partners, forcing them to share technology and experience.

A law pbaded in March by the Chinese legislator tries to rebadure foreign investors by prohibiting the use of "administrative measures" encouraging the transfer of technology. The enterprise groups welcomed this approval, although they stressed that the Chinese authorities still had great power in a highly regulated economy..

Technology transfer is one of the grievances that, according to the European Chamber, has contributed to the corporate pessimism about the ability of the ruling communist party to deliver on its promises to open its markets.

One third of the companies surveyed said that do not expect a "significant opening" of the Chinese market.