Chinese companies commonly steal IP from US innovators
Chafetz 23 [Glenn Chafetz, PhD - more than 30 years experience in government, academia, and the private sector, retired CIA agent, where he served multiple overseas tours, including three as Chief of Station, 07-31-2023, accessed on 7-25-2024, "How China’s Political System Discourages Innovation and Encourages IP Theft", SAIS Review of International Affairs -, https://saisreview.sais.jhu.edu/how-chinas-political-system-discourages-innovation-and-encourages-ip-theft/]
U.S. observers have long complained that Chinese firms steal intellectual property (IP) from American companies, universities, and research institutions.¹ Most of these stress that the government of the People’s Republic of China (PRC) directs this theft. Other focus on military applications of the theft. Both arguments are true, but presume that the problem’s ultimate source is policy. It is not. The fundamental source of the problem is China’s political system. The current Chinese political, legal, economic, and business structure disincentivizes innovation in favor of acquisition and imitation both domestically and internationally. IP theft is not simply a longstanding Chinese government policy; it is an inherent feature of the Chinese Party-State-Economy. Therefore, addressing the problem is far more challenging than most American policy makers and business leaders understand. This essay is for anyone who wants to defend U.S. IP from theft. My intention is to help Americans understand the origins, character, and scope of the threat, as well as some possible mitigations. Sadly, no comprehensive, effective, short-term solution exists.