And, it’s inevitable
Newsham 19—Grant Newsham, senior research fellow at the Japan Forum for Strategic Studies in Tokyo with more than 20 years' experience in Japan and elsewhere in Asia as a US diplomat, business executive, and US Marine Corps officer, “US helpless against China’s IP theft”, Asia Times, , April 2, 2019//Lee
IP theft can enhance “regular” technological development. Huawei, for example, invests huge amounts in research and development. But the US Attorney’s case filing also describes an internal company competition with prizes for employees who could steal the best IP. There is little incentive for China and Chinese companies to stop, as the US and other countries have never applied any real punishment. This partly explains how China has surged from a standing start in 1980 to become the world’s second-largest economy. And it is costing America. A 2018 US Trade Representative report estimated that Chinese IP theft costs the American economy between US$225 billion and $600 billion annually. As that figure shows, experts differ on how to calculate losses from IP thievery. But even at the low end, this is massive money. China is able to rapidly commercialize technologies in its huge domestic market. These can then be exported overseas, invariably undercutting competitors’ prices, thanks to cheap financing and government subsidies and assistance. IP theft is not only a commercial issue. It is contributing to China’s military build up. China has been particularly successful in obtaining stealth, naval and aviation technologies. A recent internal US Navy review lamented that the service and its contractors were “under cyber siege” – with PRC hackers, including government hackers, as prime culprits.