A bill introduced by Republican senator Josh Hawley aims to stop the Chinese government from obtaining sensitive American technology by placing limits on the sale of “core technologies.”
The China Technology Transfer Control Act would place certain technology and intellectual property on the Department of Commerce’s export control list and impose sanctions on those who violate the controls.
“It’s time to acknowledge that China acts more like an adversary than a friend,” Hawley said in a statement. “For too long, China has exploited American innovation to undermine our values and threaten our security. This legislation is an important step toward keeping American technology out of the hands of the Chinese government and its military.”
The bill, introduced Tuesday, is a direct response to what the Missouri senator called China’s “intellectual property theft and unfair trade practices,” which the country uses to promote its economy and support its military capabilities. These practices are part of the Chinese government’s “Made in China 2025” initiative to sever the country’s dependence on foreign — mostly U.S. — technology.
While China has risen to become the world’s second-largest economy, it has done so as a manufacturer of goods designed abroad. One of the ways the Chinese Communist Party aims to end its technological dependence is by requiring U.S. companies to form partnerships and share technology with state-owned enterprises. Another is through outright intellectual property theft.
Hawley’s bill would counteract “Made in China 2025” by requiring export licenses for the “core technologies” outlined in China’s plan, including information technology, robotics, semiconductors, aerospace technology, marine technology, and others.
The legislation comes amid increasing U.S. tensions with China. Officials from the United States and around the world continue to raise concerns over China’s cornering of the 5G communications equipment market, which some officials believe could create massive security vulnerabilities. And the U.S.-China trade dispute escalated Friday after the Trump administration increased tariffs on Chinese goods, with the Chinese retaliating Monday with its own tariffs. The Trump administration is expected to place more tariffs on Chinese products in the future, though President Trump has expressed interest in meeting with Chinese President Xi Jinping at next month’s G20 summit.
[Opinion: Why intellectual property can’t be the centerpiece of a China trade deal]
