Feeds

EU firms wary of China over IP insecurity

Trade chief finds businesses hanging back

Reducing the cost and complexity of web vulnerability management

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.

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.