European Business Group Says China Technology Transfer Issues Increasing

Forced technology transfers in China – one of the issues at the heart of the U.S.-China dispute – continue to increase even as the Chinese government says those types of actions do not take place, according to a results of a survey released by the European Union Chamber of Commerce in China.

The group said 20% of its members reported being compelled to transfer technology as a condition for market access in China, up from 10% two years ago. The survey indicated that nearly 25% of those reporting the activity said it was still ongoing with another 39% saying it had happened less than two years ago.

The level of forced technology transfers was higher in areas like chemicals and petroleum (30%) medical devices (28%) and pharmaceuticals (27%), the survey said.

"Unfortunately, our members have reported that compelled technology transfers not only persist, but that they happen at double the rate of two years ago," European Chamber Vice President Charlotte Roule said. "It might be due to a number of reasons... Either way, it is unacceptable that this practice continues in a market as mature and innovative as China."

The survey was done in January and February, before the latest tariff increase announced by the US. As for the US tariffs, the group said nearly half of the companies affected said they had covered the increased costs themselves and kept prices steady.