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China-U.S. Trade Talks Touch Upon Tech Transfer

China has made proposals in talks with the U.S. on a range of issues that go further than it has before, including on forced technology transfer, as the two sides work to overcome obstacles to a deal to end their protracted trade war, U.S. officials told Reuters on Wednesday.

U.S. President Donald Trump imposed tariffs on $250 billion of Chinese imports last year in a move to force China to change the way it does business with the rest of the world and to pry open more of China’s economy to U.S. companies.

This story by Jeff Mason originally appeared in Reuters.

Among Trump’s demands are for Beijing to end practices that Washington alleges result in the systematic theft of U.S. intellectual property and the forced transfer of American technology to Chinese companies.

U.S. companies said they are often pressured into handing over the technological know-how behind their products to Chinese joint venture partners, local officials or Chinese regulators as a condition for doing business in China. The U.S. government says that technology is often subsequently transferred to and used by Chinese competitors.

The issue has proved a tough one for negotiators as U.S. officials say China has previously refused to acknowledge the problem exists to the extent alleged by the U.S., making discussing a resolution difficult.

China said it has no technology transfer requirements enshrined in its laws and any such transfers are a result of legitimate transactions.

China has put proposals on the table in the talks that went further than any in the past, including on technology transfer, said one of four senior U.S. administration officials who spoke to Reuters.

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