Last Updated on March 25, 2019 by Karl Thompson
Chinese theft of intellectual property from other countries (mainly the US and those in the EU) represents the greatest transfer of wealth in history according to Keith B Alexander, former director of the US National Security Agency.
intellectual property includes such things as patents, trademarks, copyrights, trade secrets and software, and China has a long history of stealing such things ever since it opened up its economy to foreign trade in the late 1970s. China has long been known as the country of origin for counterfeit DVDs (among other products), but more recently one its largest tech firms, the phone manufacturer Huwai was accussed of encouraging employees with bonuses for gathering confidential information from competitors.
To give you an idea of the scale of this, The United States estimated in 2017 that Chinese theft of American intellectual property costs between $225bn and $600bn annually,
The type of information stolen covers a huge range of sectors: everything from the designs for wind turbines to cars, medical devices and computer chips. In one infamous case, Germany’s Siemens introduced the high-speed train to China only to find that subsequent extensions of the system were manufactured by its Chinese partner, China National Railway Corporation, which had developed similar technology suspiciously quickly.
How has China managed this?
Back in day China was more likely to engage in full on cyber-espionage, but more recently it has developed a set of policies which forces foreign multinationals working in China to divulge secrets while they are forbidden similar access to Chinese companies’ information.
Technically this is against WTO rules, but it seems that China, being a ‘big player’ on the international scene can get away with this.
Relevance to A-level sociology
This is a great example of a ‘state crime’ – state sponsored theft of intellectual property, and it’s a great example of a crime that up until this point has gone unpunished!
It also reminds us that where globalisation is concerned, there is no such thing as genuine free-trade, it’s only as free as the large nation states allow it to be.
NB – as a final note, Chinese intellectual property theft might be a thing of a past, China has invested so much in skilling its population up in technology that it is likely to become a cutting edge tech innovator in its own right in the not too distant future!