China says it won't force foreign automakers to share technology
China won't force foreign companies to transfer technology to ventures with their local partners in order to gain access to its markets, Commerce Minister Chen Deming said.
"Technology transfer and technology cooperation shall be decided by businesses independently and will not be used by the Chinese government as a pre-condition for market access," Chen said in a written statement to Bloomberg News.
China has required foreign automakers to partner with domestic automakers in return for access to the world's largest car and light truck market. The policy has drawn more scrutiny because China now wants to become a leader in electric vehicles and alternative fuels, where foreign automakers are leaders.
Many foreign automakers are reluctant to share advanced powertrain technology with China's domestic automakers.
The United States and other Chinese trading partners have increased criticism of the nation's investment policies. Last month, President Barack Obama said in his State of the Union address that he will create a trade enforcement unit to investigate unfair trade practices by China and other countries.
Restrictions and "interventionist policies" on issues such as intellectual property rights remain a concern for American companies operating in China, said Claire Reade, the U.S. trade official in charge of China affairs, in December testimony to Congress.
Canadian Prime Minister Stephen Harper, visiting Beijing this week, said he spoke to Premier Wen Jiabao yesterday about specific cases where Canadian investments weren't being approved.
Foreign trade laws
In an English translation of his comments provided by the Ministry of Commerce, Chen said China reviewed all its laws governing foreign trade and economic issues shortly after joining the World Trade Organization in 2001 and "revised those not conforming to WTO rules and its accession commitments."
The commerce minister's comments were made ahead of Vice
President Xi Jinping's visit to the United States next week. Xi is seen by analysts, including Chinese University of Hong Kong Adjunct Professor Willy Wo-Lap Lam, as the likely successor to President Hu Jintao.
"As the financial crisis is spreading and worsening, all countries are faced with the task of promoting economic growth and creating more jobs," Chen said. Stronger cooperation between the United States and China is in the fundamental interest of both nations, he said.
