Chinese policies push some U.S. tech companies out

USA today ^ | Mon Mar 29, 7:03 AM ET | Michelle Kessler

[hedgetrimmer]

Chinese government policies that favor Chinese companies over foreign firms are driving some U.S. tech companies from the booming market.

This month, chipmakers Intel and Broadcom said they'll stop selling wireless Internet, or Wi-Fi, chips in China. A new law requires that the chips include a security technology licensed by Chinese companies.

The technology can hurt chips' performance and compatibility with other devices, says Intel spokesman Chuck Mulloy. And implementing it requires U.S. chipmakers to share valuable intellectual property with Chinese companies, says Semiconductor Industry Association President George Scalise.

The Wi-Fi dispute is one of several being waged between the U.S. and Chinese tech industries.

•Semiconductor taxes. China slaps a 17% value-added tax on computer chips sold there. But it gives rebates of up to 14% to domestic chip plants. That makes it almost impossible for foreign chipmakers to compete, the SIA says.

This month, the U.S. trade office filed a case against China's semiconductor tax with the World Trade Organization (news - web sites), which China joined in 2001. China must abide by the WTO's decision or risk censure. Friday, China said it would enter talks with the United States.

•Proprietary standards and practices. China is developing its own standards for 3G cell phone networks and DVD players. (The Chinese version is called EVD, or extended versatile disk.) If the standards are widely adopted, they will allow Chinese manufacturers to avoid paying some licensing fees to foreign companies and force tech firms to make special products only for China. Officials also have taken steps to keep government agencies from using non-Chinese software.

U.S. companies urgently want to do business in China because it's a huge, growing market. China has a $1.4 trillion economy and gross domestic product growth near 10%, according to the U.S. State Department. Political changes in recent years have increasingly opened the once-isolated country to foreign companies. U.S. tech firms are eager to sell PCs, DVD players and other products to China's 1.3 billion citizens.

Chinese officials talk about fair trade, yet "behave like a protective dictatorship when it serves their best interests," says Harris Miller, president of the Information Technology Association of America, a trade group. Chinese officials deny that and say they're working to understand U.S. concerns.

Nearly every country has some policies to boost and protect domestic industries. The U.S. gives tech companies a tax break for research and development, for example. But trade groups such as the ITAA say China's policies are so extreme, they infringe on free trade. In 2003, the USA exported $28 billion worth of goods to China and imported $152 billion.

[hedgetrimmer]

Chinese officials talk about fair trade, yet "behave like a protective dictatorship when it serves their best interests,"

So we must engage in "free trade" with China, while they engaging in "protective dictatorship" trading.

Still waiting for one example of a true "'free trade" agreement coming out of the international organizations that unconstitutionally regulate our trade.

[hedgetrimmer]

China trade PING

[dennisw]

What a surprise!

[TXBSAFH]

In other words they got the technology they wanted for the US firms engaged in free trade and are telling them to go. Exactly what I thought would happen.

[SolutionsOnly]

This is only the tip of the iceberg. The Chinese are hugely unethical when it comes to trade. Their motives are transparent: they want a one-sided transfer of wealth and technology. The 'free trade' purists are either oblivious or in denial about it.

[Ciexyz]

Why am I not surprised that the Chicoms are doing this?

[hedgetrimmer]

Japan May Complain to WTO on China's Tax Rebates for Chipmakers

March 29 (Bloomberg) -- Japan's Ministry of Economy, Trade and Industry may file a complaint to the World Trade Organization about China's use of tax rebates to protect domestic semiconductor producers against foreign rivals. Japan plans bilateral talks with China to urge the country to stop favoring domestic chipmakers by refunding them about 14 percentage points of the 17 percent value-added tax collected on the industry. Foreign chipmakers don't get the tax refund.

The U.S. has already filed a similar complaint with the WTO, prompting China to agree to talks with the Bush administration on the taxes.

Japan's request to China is contained in list of priority trade barriers the government wants to see lowered, including U.S. anti-dumping laws, according to a report released today. http://quote.bloomberg.com/apps/news?pid=10000101&sid=aYuXtY7ebQwM&refer=japan

Japan's Ministry of Economy, Trade and Industry may file a complaint to the World Trade Organization about China's use of tax rebates to protect domestic semiconductor producers against foreign rivals.

China engaging in protectionist behavior? Say it ain't so!

[hedgetrimmer]

It’s important for China to gain the advantage in this core industry which is related to the country’s strategy,” said Li Ke, a director with the China Semiconductor Industry Association. “With such a big domestic market and so much (government) support, there’s no reason that China can not surpass Taiwan and South Korea and have the world’s third largest sales volume after the US and Japan.”

So those of us who believe that the United States should encourage the stability and development of our own high tech industries and scientific advancement should take a cue from the Chinese.

The decision by the Chinese government to support and develop the semiconductor industry will not be pushed back no matter what kind of fluctuations (occur in the market),” said Yang Xueming, senior advisor at the CCID. “Without it, there would be no achievements in other fields such as genetics, space and bio-technology. It is the tool and the foundation of other industries,” Yang said.

http://www.sarawaktribune.com.my/publish/article_27943.shtml

[Khurkris]

"Chinese officials talk about fair trade, yet "behave like a protective dictatorship when it serves their best interests," says Harris Miller, president of the Information Technology Association of America, a trade group."

...uhh Bubba...thats because they ARE a dictatorship...

[hedgetrimmer]

Silicon Valleys are spawning around the world

A worker repairs the roof of a Chinese building built in the Ming Dynasty (1368-1644) in the Zhongguancun area of Beijing, March 17, 2004. Zhongguancun is often called China's 'Silicon Valley' because of the high concentration of high-tech firms based there. The government is now making a push to protect old buildings in the area where the landscape is increasingly marked by new office buildings and apartment blocks. REUTERS/China Photos

[Uncle Miltie]

I know a large software company that refuses to code software for sale in Chinese, knowing the intellectual property will be ripped off as soon as it is made available to the first customer.

As a result, software companies should only offer systems as Application Service Providers (ASPs) in which the Internet is the host network system, and no code changes hands.

Chinese disrespect for intellectual property rights will harm them in the long run, as technology is not made available to theives.

[hedgetrimmer]

Retailer may pull out of China due to trademark piracy

Philippe Lacoste, director of French retail giant Lacoste and grandson of founder Rene Lacoste (L), gives a brief history of the company during a news conference in Shanghai March 29, 2004. French retailer Lacoste, frustrated over what it calls widespread piracy in China, may pull out of the market if it fails to stop a Singapore-based rival from also using a crocodile logo. REUTERS/Claro Cortes IV

[Calpernia]

Ping

[Calpernia]

ping

[hedgetrimmer]

The Japanese government report also criticized the production of counterfeit products in China that violate intellectual property laws, such as copied video games and movies.

Japan will continue to ask Beijing to live up to its WTO obligations to crackdown on video, music, and computer piracy in future talks, the report said.

China needs to revise its laws and regulations, such as raising the penalties for piracy, it said.

Beijing's possible move to prohibit car dealers from selling both imported and domestic automobiles using the same sales network was also criticized in the report.

http://news.yahoo.com/news?tmpl=story&u=/ap/20040329/ap_on_bi_ge/japan_trade_2

[CasearianDaoist]

It will happen to every US company in every sector in the Chinese economy. There is no Chinese market for western companies. It is just a myth. From computers to washing machines it will be Chinese companies creating Chinese goods and services to sell to Chinese. When they can aggregate enough capital from that market they will then come after Western firms in Western markets.

This is exactly what we did to the Europeans in the later half of the 19th century and the early part of the 20th century - we used tariffs, tech transfers and large develoing internal markets to buld a manufacturing and technological juggernaut. And we where none to careful about what little international intellectual property laws that was around at the time. What did they call us: the "Workshop of the World." They are using the same sort language to describe China now.

It will be even more burtal because all that Western Firms will have left are marketing and back office functions, all the R $ D, marketing and CMR will be done in Asia. WE could see the most peaful world war in histroy. They just cut of all acces to new technology and any productive economic activety and watch us fold.

Either we deal with it or we go the way of Europe in a new Asian order that goes from Siberia across the Indian Ocean all the way to Saudi Arabia. Soon it will be either war or serfdom.

Did you see where China now wants to join Regional Latin America development banks. Wait until they become the major investor down there and they invigorate Latin American Communism.

We have been sold a bill of goods. Globaism is suicide for the West.

[hedgetrimmer]

Here's a good one!
**

China's Communists Fall Victim to Piracy
BEIJING - China's rampant copyright piracy has hit home for the ruling communists after police caught two people with 14,000 unauthorized copies of party handbooks.

The two books contain new rules on party relations with the Chinese public and are mandatory reading for the party's 68 million members, the official Xinhua News Agency said.

Police launched an investigation following a complaint by the party publishing house that illegal copies appeared on the market immediately after it issued the real thing in February.

A bookstore owner and a printer in the western city of Xi'an were caught and admitted printing copies because the books "have become best sellers and are profitable," Xinhua said.

The report didn't say whether any party members — who are supposed to be moral role models — tried to save money on their political obligations by buying pirated copies.

It didn't say what penalties the store owner and his printer might face.

China's thriving industry in product piracy churns out illegal copies of everything from software to DVDs of Hollywood movies to fake designer shirts.

Chinese leaders have launched repeated crackdowns, but foreign and Chinese manufacturers complain that violations are still widespread.

http://news.yahoo.com/news?tmpl=story&u=/ap/20040329/ap_on_re_as/china_communists_copied_1

[hedgetrimmer]

Did you see where China now wants to join Regional Latin America development banks. Wait until they become the major investor down there and they invigorate Latin American Communism.

They have a very effective strategy in South America. They will be firmly ensconced in the Latin American economies, and when the FTAA is signed, which is supposed to create a western hemispheric economic zone, they will be able to take full advantage of the lack of borders and loss of soveriegnty to the group of 34 nations that comprise the OAS.

They are about to checkmate us.

[CasearianDaoist]

Then there can only be war.

[CasearianDaoist]

They will be firmly ensconced in the Latin American economies

Please fill me in on this. You seem to know more about it than I do. Could you point me in the right direction?