The last decade has given China a reputation, fairly or otherwise, of sharp practices when it comes to intellectual property rights. Accusations have abound that they regularly steal the IP of western organizations, and this appropriation has significantly helped the burgeoning tech sector in the country.
A new report from Georgetown University attempts to lift the lid on China’s approach to technology transfer and examine whether the reputation for shady practice is deserved.
“While cyber theft and industrial espionage may or may not be employed, we judge that the main practices enabling AI-related transfers are not illegal,” the authors say. “This inspires optimism on one level, but many, possibly most, of these transfers are unmonitored and unknown outside China.”
Deeply rooted
The report finds that many of China’s technology transfer programs are broad and deeply rooted, with an approach clearly designed to further the development of AI in the country. Most exist to provide the country with early insight and access to the latest innovations from overseas.
They note that whilst illegal means are undoubtedly used in these programs, they also utilize a variety of legal and extralegal methods, ranging from direct purchases of technology to joint research agreements with western organizations.
“China’s reputation as a copycat is overstated and the formulation itself is simplistic,” the authors continue. “China is building indigenous S&T capacity and can innovate on its own terms, while taking account of global trends to move to new stages of novel development.”
A values-based approach
The report suggests that any attempts to protect against unwanted tech transfers should be consistent with both legitimate security concerns and nationally-held values. It’s approach revolves around five clear policy options:
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Expand U.S. government data collection and analysis of AI-related transfers.
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Define general standards for evaluating transfers.
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Educate the technology sector on U.S. concerns and expectations.
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Promote immigration of AI skilled persons.
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Expand the U.S. science and technology base.
By doing these, the authors believe an effective relationship can be sustained with China that ensures a robust legal basis for collaborations between entities from the country and the west.
