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The latest annual survey of trade completed by the Office of the U.S. Trade Representative (‘USTR’) reports widespread illegal appropriation by China of US intellectual property and technology and other unlawful trade and economic practices and policies.
The report suggests China engages in many unfair and anti-competitive trade practices including lax environmental and labor policies and state subsidies that ultimately harm US companies and put them out of business.
Specifically, USTR faults China’s labor policies that prohibit such things as union organizing and bargaining collectively. Additionally, the US State Department estimates China holds approximately 2 million citizens in labor camps where they are forced to perform labor.
The report also cites various illegal activities China employs to support its industries and economy. These include unlawful appropriation of intellectual property and technology.
For example, various licenses govern the use of US intellectual property and China often violates the terms of these licenses by using intellectual property long after the licenses have expired. Furthermore, the US in early 2022 accused the Chinese government of stealing vast amounts of proprietary information across a broad swath of US firms and industries.
China also pressures US firms operating in China to transfer technological knowledge and processes to their Chinese counterparts. China in part accomplishes this by systematically acquiring or investing in US companies which ultimately transfers to China advanced US technologies.
The report also discusses the manufacture of counterfeit products in China noting China exports such pirated goods throughout the world. In the United States, China’s production of counterfeit goods comprises 83% of all counterfeit goods seized.
The report does suggest US-China trade relations have solidified and progressed since January 2020 when both parties signed the U.S.–China Economic and Trade Agreement.
Nevertheless, the report concludes global trade has unfairly been harmed and distorted by China’s anti-competitive behavior which negatively impacts US consumption, production, and investment.
Chinese press characterizes the US report as a package of disingenuous lies that does nothing more than provide the US with a means to intimidate China who it views as hostile and disinclined to yield to US pressure and power.
