Report: China forcing foreign automakers to give up EV secrets?
 

<p>Filed under: <a href="http://www.autoblog.com/category/hybrids/" rel="tag">Hybrid</a>, <a href="http://www.autoblog.com/category/china/" rel="tag">China</a>, <a href="http://www.autoblog.com/category/etc/" rel="tag">Etc.</a>, <a href="http://www.autoblog.com/category/plants-manufacturing/" rel="tag">Plants/Manufacturing</a>, <a href="http://www.autoblog.com/category/tech/" rel="tag">Technology</a>, <a href="http://www.autoblog.com/category/electric/" rel="tag">Electric</a></p><a href="http://online.wsj.com/article/SB10001424052748704394704 575495480368918268.html?m od=WSJ_hps_LEFTWhatsNews" ><img width="630" vspace="4" hspace="0" height="420" border="1" align="top" alt="Chevrolet Volt" src="http://www.blogcdn.com/green.autoblog.com/media/2009/12/volt-plug.jpg" /></a><br />
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So you want to sell your foreign cars in <a href="http://www.autoblog.com/category/china/">China</a>? If you're an automaker, it might cost you a whole lot do so. A report in <span style="font-style: italic;">The</span><em> Wall Street Journal</em> claims that the Chinese government wants to force foreign companies to divulge their <a href="http://www.autoblog.com/tag/electric+vehicle">electri c vehicle</a> technology secrets in order to sell their products in China.<br />
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China wants to become a global power in the development and production of <a href="http://www.autoblog.com/category/electric/">electric</a> cars and <a href="http://www.autoblog.com/category/hybrids/">hybrids</a>. Apparently, they want to skip the whole research part and go right to utilizing technology developed and tested by others. This would be fine if they wanted to <em>pay</em> for said tech, but simply bullying manufacturers into handing it over is not the way to go. <br />
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From the <span style="font-style: italic;">WSJ</span>:<br />
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<div><em>"The car executives are joining a chorus of companies criticizing China's industrial policies. Business people and government officials say Beijing's so-called indigenous-innovation efforts discriminate against them and are aimed at gaining control of foreign intellectual property."</em></div>
</blockquote>China is a very important market for <a href="http://www.autoblog.com/tag/automakers">automakers</a>, as it's the world's largest purchaser of automobiles. China's current proposal says that any foreign automaker wishing to produce new-energy products there must establish joint-venture agreements with Chinese companies. The foreign automaker would then only be allowed to hold a 49-percent stake in the newly formed alliance. Obviously, this isn't sitting well with companies that have invested massive sums of money developing new energy-efficient solutions. <br />
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Forcing a so-called "alliance" that all but hands over highly-valuable intellectual property to the Chinese party is not an example of China "playing nice" with others. Hopefully, a more workable solution can ultimately be agreed upon. Unfortunately, China has a lot of leverage here. It knows exactly how important its market is to every other automaker on Earth, and it's obviously not afraid to twist arms to get what it wants. <em>Thanks for the tip, Sea Urchin!</em><br />
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[Source: <a target="_blank" href="http://online.wsj.com/article/SB10001424052748704394704 575495480368918268.html?m od=WSJ_hps_LEFTWhatsNews" >The Wall Street Journal</a>]<p style="padding:5px;backgr ound:#ddd;border:1px solid #ccc;clear:both;"><a href="http://www.autoblog.com/2010/09/20/report-china-forcing-foreign-automakers-to-give-up-ev-secrets/">Report: China forcing foreign automakers to give up EV secrets?</a> originally appeared on <a href="http://www.autoblog.com">Autoblo g</a> on Mon, 20 Sep 2010 10:31:00 EST. Please see our <a href="http://www.weblogsinc.com/feed-terms/">terms for use of feeds</a>.</p><h6 style="clear: both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding: 0;"></h6><a href=http://online.wsj.com/article/SB10001424052748704394704 575495480368918268.html?m od=WSJ_hps_LEFTWhatsNews> Read</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/2010/09/20/report-china-forcing-foreign-automakers-to-give-up-ev-secrets/" rel="bookmark" title="Permanent link to this entry">Permalink</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/forward/19638549/" title="Send this entry to a friend via email">Email this</a>&nbsp;|&nbsp;<a href="http://www.autoblog.com/2010/09/20/report-china-forcing-foreign-automakers-to-give-up-ev-secrets/#comments" title="View reader comments on this entry">Comments</a>

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