Feeds

EU firms wary of China over IP insecurity

Trade chief finds businesses hanging back

Providing a secure and efficient Helpdesk

European companies are hesitant to do business in China because of fears that their intellectual property will not be protected, according to the European Union's Trade Commissioner Catherine Ashton.

Ashton told a trade and investment fair in China that she was "encouraged" by efforts to improve protections there.

"Without the promise of protection for their innovations, European companies are sometimes hesitant to invest here," she said. "Protection of intellectual property, especially patents, is... crucial if more companies are to bring their ideas and their technology to China."

Ashton talked of poor protection for intellectual property rights as being a "barrier" to investment.

"With global competition for the best investment rising, governments should be seeking to attract not restrict investment. Barriers in China not only cost European business, but also deprive the Chinese economy of investment inflows and significant tax revenues," she said.

She did say that the situation seemed to be improving, though. "It is ... very encouraging that the Chinese leadership sees the necessity of a well-enforced IPR system as a stepping-stone to future economic development," she said.

Ashton stressed that investment into the EU from China and to China from the EU must flow more freely than in the past.

"Foreign direct investment should not be curtailed by equity caps, unnecessary joint venture obligations or restrictions in sectors considered strategic. On the contrary – the more important and economically strategic a sector, the more indispensable it is to attract investment which brings technology transfer and research and development," she said.

"Investment is the fuel that drives the engine of long-term sustained economic development. With the free flow of investment inside the European Union, we have created not only the biggest economy in the world, but also a strong motor for economic development," said Ashton, the UK's nominated Commissioner.

See: Ashton's speech

Copyright © 2009, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Secure remote control for conventional and virtual desktops

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.