Though my wife would. 
Posted on 04/24/2009 1:02:59 AM PDT by TigerLikesRooster
China to put squeeze on foreign firms / IT companies must reveal product secrets
The Yomiuri Shimbun
The Chinese government has decided to launch a system next month to force foreign manufacturers of digital household appliances and other items equipped with computing devices to disclose key information, The Yomiuri Shimbun learned Thursday.
The move is aimed at controlling the makers' products when their goods are made or sold in China.
Beijing likely has informed Tokyo and Washington that detailed provisions to enforce the system will be announced by the end of this month. The Chinese government likely will give manufacturers a grace period before implementing the system, but the new rules will be enforced after this period ends.
After the plan to introduce the system was reported, Japan, European countries and the United States urged the Chinese government to abandon the idea because it would make it easier for foreign companies' intellectual property to be passed on to Chinese competitors. Critics say Beijing's decision to launch the system despite opposition from other countries likely will cause an international problem.
The system will require foreign companies to disclose the source code for their products in a bid to rein in their information technology products made or sold in China.
Under the planned system, a Chinese government official would visit companies in Japan to check products.
If a company refuses to have its products inspected, those products will not be allowed to be manufactured or sold in China. No developed nation has this kind of system.
(Excerpt) Read more at yomiuri.co.jp ...
Ping!
Ping!
“The move is aimed at controlling the makers’ products when their goods are made or sold in China”
or primarily copying them.
Now, IBM, Intel, MicroSoft, GM and others will learn what it's like dealing with a regime that still in the 21st century has a "Propaganda Department of the Central Committee."
They laid down with dogs and now they're gonna get quite a few fleas
Serves em right
hey, obama will cave in less than three days......
Then don’t manufacture or sell products in China that they demand this information on.
The move is aimed at controlling the makers' products when their goods are made or sold in China.
LOL A big lie
ChiComs will take this informations and give it to "favorite capitalists" who will make these items themselves under 100% Chinese ownership
Foreigners take a hike and go home you are no longer needed
We and our children will rue the very foolish decision to make the PRC powerful.
The concept of "intellectual property" is probably not going to survive into the next century.
On the bright side, Chinese regime may fold, first.
I for one welcome our new Chinese overlords.
Actually, I think our government should be doing something similar, especially for any digital device connected to the internet. What lies within the firmware of products from China? I wonder.
Chicomms can byte me!
And so the nationalization of companies foolish enough to trust a Communist nation as their business partner begins. How da Demacoms and Wepublicants gonna explain this? Communist leaders know when to go in for the kill so to speak. They see the corporate part of the U.S. as now being weak and dependent on them for their corporate survival. Sad to say it is true they are. BLIND FOOLS!
Attack of Clones!
Suckers.
Look, even the people at MicroSoft can’t decipher their own source code. THis may work out.....
Why doesn't MS go open source anyway if that's the case?
I think they are embarrassed to do so. When people find out we have been paying for untested spaghetti code all these years it will hit the fan.
China is trying to duplicate Vista.
They like Bill Gates and have decided to emulate the Microsoft model.
They have 1 billion programmers randomly striking keys, and are compiling this into an operating system.
It will be marketed soon, with upgrades to fix the bugs.
1,000,000,000 beta testers, not enough....
What choice did they have? They could have not done business with China and they would have been out of business decades ago because their competitors would have.
In the absence of government regulation, it's an out of business strategy to not go where the cheap labor is. Government could have set the rules and kept them all out of China. But to blame individual firms when the market rules basically demanded that they participate is crazy.
Wonder how much business this is going to cost the ChiComms?
Any business with any sense will pull their manufacturing out of China, or they will steal their proprietary information and “pirate” them out of business anyway.
How's the Kool-Aid? Is this how you feel? Name one company back then that was going out of business and HAD to move to ChiComville or go bust. I am sure there is one. Before you make statements, please have some backup info. That is all I ask.
If China would like to invite product manufacturing to leave their country, I say they ought to go right ahead. Japan has been having some tough times, they could use a boost.
Boy, this is rich... You've got companies that have moved their production facilities to a communist country, and then they're surprised that this would happen? The very definition of "communism" includes the fact that the government, in this case China, not only controls, but OWNS the means of production, and everything is subservient to the State. If they "own" the means of production, and everything is centrally controlled, then why wouldn't China also own any "trade secrets?" The government may decide that different people should be running the production facility and move it elsewhere putting the "original" owners out of business. Why would anybody be surprised by this?
Mark
The Obama administration and the MSM?
Mark
They laid down with dogs and now they're gonna get quite a few fleas
Serves em right.
Yep. Funny how that works. Couldn't have said it better myself.
Or, um...hey, here’s a though...maybe even the U.S.
Your post makes a lot of sense....these companies knew full well that Communist China is still a COMMUNIST country....they still control all means of production.
But, its the same Nutty Liberal Free Trade Globalists....in bed with Soros, Al Gore, and other Free Traders...who have been pushing this Free Trade with Communist China crap for years. Now, they are getting miffed because Communist China is acting like their Communist selves.
Now, they are paying for their economic treason.
Its time to bring it back to the USA
Of course. That would be a very nice thing for us. I mention Japan (S. Korea too) because that would gall China even worse and it’s a logical short term transition.
China is definitely putting the total back into totalitarian. It does not foresee the total egg on its face that it is going to get.
This is no big deal. IBM has at least 3 MAJOR basic research and development laboratories running in mainland China. I think the most recent opened last year. All 3 have really big budgets and are doing cutting edge research. IBM has publicly stated that new innovation and market growth for the immediate future will come from outside of North America and Western Europe. (NOTE: They are NOT talking about Australia, New Zealand or Singapore.) They are concentrating investment and assets accordingly.
HP, IBM, all the high tech firms have been investing and building in China, India, etc. for decades. All of them have dramatically accelerated their investments in Asia-Pacific in the last half decade or so. They are ramping up investment in South America and moving in to Africa.
Unless and until China actually nationalizes private facilities there and actually confiscates revenues - the transfer of intellectual property (processes, design, manufacturing techniques, etc.) is simply a cost of doing business there. It is still less hampered by unions, taxation, an anti-business press, etc. In centrally managed and tightly controlled countries, as long as the right politicians are kept happy, the businesses will make enough profit to stay there. The executives making global decisions are focused on keeping their companies alive. That’s why HP’s Hurd took home $34M last year and IBM’s Palmisano took home $25M. They worry about keeping their revenues up and their expenses down.
Marx said that Western business will sell them the rope to hang themselves. This only proves that there is actually one thing he said that is true.
Uh, I messed up the quote. Marx said businessmen will sell the rope that would be used to hang them (the businessmen) to their hangman (presumably the proletariat or Communists - take your pick.)
You don't wait until you have lost your market share and are about to go out of business to cut your costs. You do it as soon as you identify the opportunity to costs.
Do a google on "out of business lost market share to lower cost China" and read some of the articles.
It's not my koolaid you should worry about. It's the koolaid you've been drinking that says you can have free trade with low labor cost countries like China, free trade with countries that do not share your respect for human rights, and free trade with countries that have completely imcompatiable social protections and tax structures. And that free trade is defined as including transferring your technology and manufacturing processes to them.
I'm not saying that we shouldn't take advantage of China's low labor cost. But you have to be very careful about how you do it. You can't transfer your manufacturing operations and expect that all the associated engineering and research jobs are going to stay here. So government has to be involved and decide which industries are non-critical and can go overseas. Ours was the largest market and we could have selectively protected it.
That didn't happen. We let almost everything manufacturing related go even including many military parts. We even trained our foreign competitors in sensitive technologies in our universities.
The problem lies where the technology can be used for more than one thing. I don’t want to build Product A in China if China is going to demand Product A’s secrets then turn around and churn out Product B with the same thing and undercut my potential future market. Patents can protect from this to some extent, but not every innovation of worth gets patented.
Of course they do...they have us by the throat...free trade the gift that keeps on giving.
Though my wife would.
How do you say, f-— you, in the Communist Chinese language ??
Hmmmm... copyright...pffft up in smoke
The Chinese are getting lazy, they used to just steal the secrets via the H1Bs.
They outsourced to cut their costs and now they wonder why it’s about to cost them more? India will shortly follow suit either by demanding the same things and/or charging more for their services. Corporate weasels rarely look at or consider the real risks involved in doing business with or worse moving critical activities and operations to these countries. Once they know they have you snagged they are obviously going to reel you in.
Yes it does matter in fact...your are delusional; China is spending money on weapons. China always owns 51 % of any business in China. For heavens sake, it’s a communist country...In China a GM plant went down in December as they always do...came back in January to find every piece of equipment gone...guess what the Chinese own it now...they had to buy new equipment...have to build cars in China to sell there...just as Korea who tried to play the same little trade games with China that they do with us found out...got their butts tossed out of China asap.
It wasn't any great sweeps of history that made them open brand new plants over in China when the US could have used them desperately.
They saw two things that blinded the to all else. They saw a virtually unlimited market while ignoring that the govt controlled access to that market, and they saw simple $$$ in their eyes through the production gains they could get for their bottom lines having slave labor assembling their products.
Most of us here on FR knew they'd run across these kinds of problems. After all, they have no rights to private property, no rights to defend themselves from the right to trade secret. Right up to the point that the ChiCom govt could out and out steal their factories by nationalizing them. China is a land without indiviual property rights.
It's a land where they have little respect to their own laws as written, able to skirt the law when the law is too inconvenient. It's a land where the police protect the interests of the State, not the individual.
American and other foreign nationals knew these things to start with. They simply chose to ignore the in the forelorn hope that they'd be able to the products to market before the he heavy fist of govt fell on them.
Deperate hope and not realistic.
You've missed the point. It doesn't matter that you can predict these kinds of problems would occur. In the short run, if you don't go overseas, your out of business anyway.
If you make widgets and your labor cost is $15/hr. And your competitor goes overseas and his labor cost is $1/day. You aren't going to have to worry about the Chinese stealing your production process. You'll be bankrupt long before the Chinese get around to stealing your competitor's process.
In the short run, your competitor made money and you didn't. And that's all that counts. You're competitor won and he maximized his profits given the rules of the game.
But it's government's role to define the rules of the game. And if you don't want one of your competitors going overseas and putting you out of business, then government has to step up to the plate and define the rules so that none of your competitors can't go overseas. Otherwise you might as well be the first and make the short run profits.
If China steals the technology now, is it going to help the firms that refused to go overseas? No. They are out of business.
It's the same argument with hiring illegal aliens. If the government won't enforce the law against your competitors, then whoever hires the illegals first and lowers their costs and makes the profits wins. Otherwise, you go bankrupt with the moral knowledge that you obeyed the law.
No fooling - the sarcasm of my statement obviously went right by you. I am constantly amazed at the technical brainiacs that BRAG about the intellectual engagement with and sharing of basic research with the Chinese government of information and data that has obvious military application.
For years, one of the most honored ‘scientists’ in the NY research center has been an outspokenly pro-Castro Cuban brought over to the US in his early teens by parents that were fleeing Communism.This guy was an advisor to Clinton’s Science & Technology panel.
I believe that one of the real downsides to globalization is the sharing of technology that has military uses...I agree with you. As for sarcasm, I sometime don’t get it...sorry!
You miss one point...there are worse things the losing business...like a war with China after we have given them our technology...the American businesses should not have been put out of business by globalization. It was never in our best interest to buy into this nonsense...never.
China owns Taiwan. They have only the economic freedom that China allows thus, this won’t save them.
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