US accusation of China IP theft, forced technology transfer unfounded: white paper

Accusing China of stealing intellectual property to support its own development is an unfounded fabrication, according to a white paper titled China's Position on the China-US Economic and Trade Consultations released by the State Council Information Office on Sunday.

Historical records confirm that China's achievements in scientific and technological innovation are not something we stole or forcibly took from others; they were earned through self-reliance and hard work, the white paper said.

China has established a legal system for the protection of intellectual property that is consistent with prevailing international rules and adapted to China's domestic conditions. The understanding of the importance of intellectual property among the general public and business community in China has increased, the value of royalties paid to foreign rights-holders has risen significantly, and the number of intellectual property applications and registrations has surged, said the white paper.

Former WIPO Director General Arpad Bogsch spoke highly of China's legal framework for intellectual property protection, noting that China's achievements are "unmatched in the history of intellectual property protection."

The US Chamber of Commerce recognized that China is making concrete progress in creating an intellectual property environment appropriate to the 21st century.

In its 2018 China Business Climate Survey Report, the American Chamber of Commerce in China noted that among the main challenges facing its member companies operating in China, concern over intellectual property dropped from 5th place in 2011 to 12th place in 2018.

An article in The Diplomat predicted that China will become a leader in global intellectual property. Many of the concerns raised by foreign firms doing business in China have already been addressed through judicial reform and a strengthened enforcement mechanism, according to the white paper.

In terms of some key innovation indices, China is already among the world's leading players, the white paper said.

In 2017, total R&D investment in China reached RMB 1.76 trillion, ranking second in the world. The number of patent applications reached 1.382 million, ranking No. 1 in the world for the seventh consecutive year. The number of invention patents granted reached 327,000, up by 8.2 percent year-on-year. China ranks third in the world in terms of valid invention patents held, the white paper noted.

China's economic development has benefited from international technology transfer and dissemination. International holders of technology have also reaped enormous benefits from this process, said the white paper.

China encourages and respects voluntary technical cooperation between Chinese and foreign firms based on market principles. It strongly opposes forced technology transfer and takes resolute action against intellectual property infringement. Accusations against China of forced technology transfer are baseless and untenable, the document noted.