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China “Indigenous Innovation” Policies Threaten Access to Chinese Market
Industry association CEO’s call on Obama Administration to develop a “strong, fully coordinated” response
The Business Software Alliance today joined eighteen other industry trade associations calling on Obama Administration officials to develop a strong and coordinated response to China’s “indigenous innovation” procurement policies.
Robert Holleyman, President and CEO of BSA, the global trade association representing the software industry, said:
“With these policies, China is implementing a market-restrictive program which runs counter to the spirit of the free trade commitments made by President Hu. These restrictive procurement policies not only hurt US businesses, but also reduce China’s access to innovative, world-class technology. This approach not only harms US and other non-Chinese companies, but will ultimately harm China’s economic development and growth.”
In a letter, the business leaders asked Secretaries Clinton, Geithner, and Locke, Attorney General Holder, and United States Trade Representative Kirk to make the issue a strategic commercial priority, and to address efforts by the Chinese government to limit competition by non-Chinese companies in all bilateral and multilateral meetings and forums.
Association leaders are responding to new rules instituted by the Chinese government that create a catalogue of products that receive significant preferences for procurement by government agencies in China. To be included in the catalogue, products must contain intellectual property developed, owned and registered in China. These new policies essentially exclude US and other non-Chinese firms from significant business opportunities with the Chinese government. Initial industries that are impacted include computer, software, telecommunications and green technology.
Today’s letter states, “For several years, the Chinese government has been implementing indigenous innovation policies aimed at carving out markets for national champions and increasing the locally owned and developed intellectual property of innovative products. We are increasingly alarmed by the means China is using to achieve these goals.”
The letter specifically requests that “your agencies make this issue a strategic priority in your bilateral economic engagement with China; develop, in consultation with the business community and like minded foreign governments, a strong, fully coordinated response to the Chinese government; and raise this issue with your Chinese counterparts in all appropriate multilateral and bilateral meetings and forums.”
The full text of the letter can be found here: http://www.bsa.org/~/media/Files/Policy/China/ltr_cnprocurement.ashx
The Business Software Alliance (www.BSA.org) is the world’s foremost advocate for the software industry, working in 80 countries to expand software markets and create conditions for innovation and growth. Governments and industry partners look to BSA for thoughtful approaches to key policy and legal issues, recognizing that software plays a critical role in driving economic and social progress in all nations. BSA’s member companies invest billions of dollars a year in local economies, good jobs, and next-generation solutions that will help people around the world be more productive, connected, and secure. BSA members include Adobe, Apple, Autodesk, AVG, Bentley Systems, CA, Cadence, Cisco Systems, CNC, Corel, Dassault Systèmes SolidWorks Corporation, Dell, Embarcadero, HP, IBM, Intel, Intuit, McAfee, Microsoft, Minitab, PTC, Quark, Quest Software, Rosetta Stone, SAP, Siemens, Sybase, Symantec, Synopsys, and The MathWorks.
Travis Larson media@bsa.org +1.202.346.8827
United States
