Apple among US tech firms to blame Chinese regulations for breaching intellectual property rights

“U.S. industry groups representing Apple, IBM and other tech giants have blamed China’s rules on inbound investment for infringing the intellectual property rights of US companies,” Zhenhua Lu reports for The South China Morning Post. “Apple and IBM are members of the U.S.-China Business Council, which includes nearly 200 of the largest US companies. Other members include Amazon, Google and Oracle Corporation.”

“Repeating a complaint likely to top the agenda during U.S. President Donald Trump’s upcoming visit to Beijing, the advocacy groups spoke in a public hearing convened to gather input for an ongoing trade investigation,” Lu reports. “Erin Ennis, senior vice-president of the U.S.-China Business Council, told the hearing in Washington that rules that required them to transfer technology to Chinese enterprises ‘as a condition to gain market access’ might place ‘unreasonable and discriminatory burdens’ on American commercial interests.”

“The event was the first hearing in support of U.S. Trade Representative Robert Lighthizer’s inquiry into alleged Chinese intellectual property theft under Section 301 of the US Trade Act of 1974,” Lu reports. “Trump, who is expected to visit his Chinese counterpart Xi Jinping next month, ordered Lighthizer to start the investigation in mid-August… ‘We will stand up to any country that unlawfully forces American companies to transfer their valuable technology as a condition of market access,’ Trump said in Washington after signing an executive order authorising the investigation.”

Read more in the full article here.

MacDailyNews Take: China infringing IP rights? Say it isn’t so!


  1. When a failed political system kills creative incentive, they resort to crime in order to acquire the creations of others. This is the modern history of China: Criminal Nation.

    This is no surprise. It’s history repeating itself.

    Short term profits, Long term losses?

    You know my answer.

    1. They merely copied the tried-and-true methods that the nascent New York book publishers and Broadway theatre companies used to steal from British creators in the 1800s, and when those got big enough to buy laws the creative types of the early 1900s moved west again to Hollywood to establish the movie and then TV studios we know today.

      So yes, I agree it’s it’s history repeating itself.

      1. A constant theme in my understanding of human history are circumstances in which we humans are willing to make psychopathic decisions that damage or destroy the lives of others. I don’t believe WHY we make those decisions has been adequately studied. We’re getting a grasp on genetically induced psychopathy but getting nowhere near understanding other sources of psychopathy in the general public, nor any just method of stopping it. It’s one of those BIG THINGS we keep avoiding.

    2. By what measure have they failed? I’m no fan, and not long ago I had to change planes in China and felt uncomfortable the entire time (and among other things got barked at for moving towards the x-ray conveyor belt before being told to), but it doesn’t seem like a failure, at least not yet.

      1. Study the meaning of and examples of Totalitarianism. When and why does it result in a government? What are its effects upon the citizens of the country involved? What are its effects upon other countries around it?

        But to answer your question, the destruction of any and every citizen’s incentive to be creative is FAIL enough. I’ll also point to one of the constant messages we learn from nature: There is no such thing as a viable monoculture. Because that is the case, when a political system attempts a monoculture, it immediately FAILs and the usual, old, human default results: FORCE people to submit to the theoretical monoculture. Meanwhile, those of us who demand to be creative, find other outlets for our creations. Since the fraudulent monocultural political system makes such alternative outlets illegal, citizens are forced to become criminals. As a result, every totalitarian political system becomes criminal. Russia is still suffering from this phenomenon, attempting to overcome the criminal culture that is now ingrained in their history thanks to the fraud that is called ‘Communism’.

        Note that I call myself a ‘3D thinker’. Don’t consider me conservative OR liberal OR moderate. I’m a student of natural systems and human behavior. They don’t ever fit onto an artificial 1D political scale.

      2. If you think that’s bad, try entering the US as a visitor who is a bit brown looking and has an Arabic name.

        My ( female ) doctor is married to a Syrian who is a well respected surgeon at a leading hospital in Oxford. She was born in the UK, while he fled here in the late 1970’s because professional people such as teachers and doctors were being assassinated in Syria at that time. He has had British nationality ever since he married her in the mid 80’s. They had a Christian wedding and are both practicing Christians. They are just about the most respectable people that you could ever expect to meet and very successful too.

        They recently went to America to visit their daughter who is studying medicine at a university in California and they have been visiting America for many years. He regularly attended conferences and often spoke at medical conferences in the US. However the way they were recently treated by Border Control was truly appalling. It took them several hours to get into the country, despite having all the appropriate visas and paperwork and throughout that time, the attitude of the staff was horrifically hostile and menacing. Their telephones were taken from them, they were not allowed to contact their daughter who was waiting in the arrivals hall. When their daughter enquired about them, she was told by the airline that they had been on that plane, but nobody could or would tell her what had happened to them since. They are now pursuing the matter with the US Embassy in Britain, but are currently being fobbed off with bullshit.

        I’ve been to China, Russia and plenty of other difficult or turbulent countries elsewhere without problems, but American Border Security staff are currently getting way out of control. I have previously written about the hostility I encountered when driving from Canada into the US late last year and prior to that I assumed that people who were treated like that probably started off with a bad attitude and deserved what they got, but when you see it happening to you simply because that particular agent decides to act as an asshole, it comes as a very unpleasant surprise.

  2. Stop your crying. These CEOs wanted to dance with the China govt and they knew their IP would be stolen from them.

    If they are that stupid to think China won’t take their IP, then they don’t have the intellect to be a CEO.

    Go on a date with a rapist, and you will raped. Everyone knows that. How come these CEOs can’t figure that out?

    1. Oh Brother, you are right on…How possibly could a corporation like Apple NOT see this…Stop your crying American Companies…Cannot believe you were to STUPID to not see this coming…sigh

  3. This speaks to Tim Cooks close relationship with the Chinese.

    A misplaced trust if you ask me.

    But like others said above, Apple agreed to turn over IP to access China’s cheap factories, cheap labor, and pipeline to needed raw materials.

    If it weren’t for this the iPhone X would cost $2000, or $1500, not $1000.

    1. Tim Cook has been dealing with and regularly visiting China for much longer than most and while he would have more sense than to criticise the Chinese State in public, he will have no doubts about how they operate in reality and will be acting as prudently as possible in his dealings with China.

    2. I would suck it up NOW and take manufacturing of Apple equipment domestically or at least out of Asia and the Far East. Trump could give amnesty to Apple’s zillions stashed overseas in exchange for their one-time retooling / reboot of precision manufacturing on this large scale to wrest control of our precious IP and supply chain away from the Reds

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