On October 10, representatives of China General Chamber of Commerce-USA (CGCC) member companies attended a public hearing held by the inter-agency Section 301 Committee on Section 301 Investigation of China's acts, policies, and practices related to technology transfer, intellectual property, and innovation in Washington D.C. Chairman of CGCC and President and CEO of Bank of China USA Xu Chen spoke at the hearing on behalf of CGCC and CGCC Foundation, and answered questions to voice for the legal rights and interests of Chinese enterprises operating in the United States. Representatives from 14 organizations and enterprises spoke at the 4-hour hearing, which was attended by over 150 participants.
Xu Chen said, “During the mergers and acquisition process, technology and other intellectual properties are part of the intangible assets that was fairly valuated by various third-party due diligence firms. Every transaction involving technology is based on transparent conditions and mutually agreed terms pursuant to business laws and regulations. Most technologies and intellectual properties are like any other types of assets that should be allowed for freedom of ownership transfer as long as the condition meets legal requirements and the value proves fair. The impediment of technology acquisition will not only lead to operational loss on the both sides, but also hurt the economy and ultimately consumer welfare at large.”
The United States Trade Representative initiated an investigation pursuant to the Trade Act of 1974, as amended (the Trade Act) on August 18, 2017, to determine whether acts, policies, and practices of the Government of China related to technology transfer, intellectual property, and innovation are unreasonable or discriminatory and burden or restrict U.S. commerce.
As the largest and most influential non-profit organization representing Chinese enterprises in the United States, CGCC submitted written comments to the Section 301 Committee on September 28, based on research, data analysis and survey. The written comments and summary of testimony are available at:
https://www.regulations.gov/document?D=USTR-2017-0016-0026
The economies of China and the United States are highly complementary. The two countries can achieve mutual benefit and win-win results on the principles of seeking common ground while reserving differences, mutual respect, and mutual understanding. Unreasonable single-sided allegations bring nothing but unnecessary conflicts and harm to China-US economic and trade relations. CGCC looks forward to a successful state visit by President Trump to China in November, which will help advance the China-US economic relationship towards soundness and stability.
The hearing was also covered by Bloomberg News and Reuters, who took either a neutral or pro-China stance. The reports are available at:
Bloomberg News
China Warns U.S. That Intellectual-Property Probe Risks Trade War
https://www.bloomberg.com/news/articles/2017-10-10/trump-warned-intellectual-property-probe-risks-china-trade-war
Reuters
Some U.S. businesses urge caution in China intellectual property trade push
http://www.reuters.com/article/us-usa-trade-china/some-u-s-businesses-urge-caution-in-china-intellectual-property-trade-push-idUSKBN1CF2OV