Firms Urge China To Repeal Indigenous Innovation Policy

Tech Daily Dose (Gruenwald) - A group of U.S. and foreign trade associations filed comments with the Chinese government Monday once again voicing concerns with its "indigenous innovation" policy that they say favor Chinese companies over foreign operators. In their comments with China's Ministry of Science and Technology, the U.S. and foreign associations argued that the proposed rule would in the long term lead to less innovation in China.

The groups called for some specific changes to the proposed rule such as outlining what policies firms must abide by to be certified by the Chinese government. But overall, the groups urged Chinese officials to rescind the proposed policy. "Given broad concerns about the absence of clarity around so many provisions in the draft notice, we respectfully urge [Chinese officials] not to publish the indigenous innovation product list and not carry forward this program," they wrote.

They also voiced concern with other Chinese policies that they say encourage or mandate procurement from Chinese suppliers; extend monetary or other benefits only to Chinese suppliers; and "provide preferences to products including 'Chinese' IP, or compel the transfer of or otherwise fail to adequately protect IP in non-Chinese products."