Governments across the world have more than a few problems when it comes to the way that China chooses to do business. The country has been accused of many unfair practices, from mass subsidies to tariff manipulation. Calls for a balance of some sort have thus far gone mostly ignore. One of the big issues is the question if intellectual property and a new study by the U.S. is claiming that China is stealing a lot more than we think.
The study claims that intellectual property theft amounts to an estimated $300 billion lost each year in the U.S. alone. It also claims that China is responsible for at least 50 percent and potentially 80 percent of all IP theft. The end result is a loss of millions of jobs and the stagnation of the U.S. economy.
The study further goes on to say that one of the main reasons for the continued IP theft from China is that the governmental policies of the country encourage the acts of hackers. The protection of Chinese property rights above foreign rights allows businesses to steal IP without as much fear of retribution. Thus, it’s just the smart way to do business.
Problems with IP theft are further exacerbated by the rising problem of hackers. China has also been accused of using hacking in an official, government-sponsored way. These computer jockeys are being held responsible for much of the IP theft as well as the theft of many government documents.
A solution is proposed by the study to help with the problem. They suggest blocking goods acquired due to IP theft, an increase in anti-theft funding for the FBI and other organizations and that countries be rated on their ability to control IP theft within their borders. They also suggested, albeit more subtly, that companies should be allowed to take more aggressive measures in response to hackers.
The study will be presented before the presidents of both the U.S. and China at a summit early in June. Whether China has anything to say about it remains to be seen. Whether they try to do anything to rectify the situation is highly unlikely. If China chooses to continue to ignore this problem it cause a serious backlash for them, like it or not.
Neon computer photo courtesy of Anti Virus 777 via Wikicommons
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