Rethinking Technology Transfer Policy toward China

Overview:

This report by James Andrew Lewis at the Center for Strategic and International Studies (CSIS) discusses the need for a new strategy in the West's technology transfer policy toward China. The report examines the strategic risks posed by China's commercial and technology practices and suggests that a collective approach is necessary to compel China to become a responsible participant in global markets.

Key Points:

1. China's technology practices create strategic risks, and the Western response has been inadequate in protecting interests and compelling China to change.
2. A collective approach is needed to deny China the ability to export products of illicitly acquired technology and to engage in a sustained diplomatic effort.​

Key Quotes:

1. "The greatest leverage will come from a collective approach to deny China the ability to export the products of illicitly acquired technology."
2. "Managing technology transfer to China is a central strategic consideration for Western countries."

What They Discuss:

• The importance of technology as a key determinant of national power and its role in international relations.
• The need to rebuild the technology and trade relationship with China to make it fair and trustworthy.
• The challenges in managing technology transfer to China, including the need for concrete steps to repair relations.
• Recommendations for a new approach, including denying China the benefits of illicit activities and extending the notion of buying from trustworthy suppliers.
• The need for mechanisms to hold China accountable and policies that restrict China’s ability to exploit Western markets.​

What They Recommend:

• Articulating a consistent message to China and the international community on required changes by China.
• Measurable reductions in illicit or predatory behavior by China.
• Efforts to accelerate Western innovation, with continued interaction with Chinese firms and researchers under certain conditions.
• Policy and regulation in Western countries to allow interaction with China, subject to measures that restrict exploitation.​

Key Takeaways:

• The report highlights the need for a coordinated and comprehensive diplomatic response to redefine interactions with China.
• It emphasizes the importance of technology in the strategic competition with China and the need for a sustainable policy.
• The recommendations aim to balance the need for continued interaction with China while protecting Western interests and encouraging responsible participation by China in the global economy.

This is a brief overview of the report from the Center for Strategic and International Studies. For complete insights, we recommend reading the full report.