EU takes China to WTO again over technology transfers
PhilipBlenkinsop Published 5Hours Ago BRUSSELS,Dec 20 (Reuters) - The European Union launched a second challenge against Chinaat the World Trade Organization on Thursday over laws it says force thetransfer of technology in areas including electric vehicles and biotechnology. TheEuropean Commission, which oversees trade policy in the 28-member EuropeanUnion, said in a statement that it was significantly broadening and deepeningthe scope of its WTO action against China. TheEU's new challenge focuses on Chinese laws that regulate the approval ofinvestments for electric vehicles and biotechnology and the approval of jointventures across sectors. TheCommission said that the Chinese laws imposed requirements on foreign companiesoperating in China, contravening a commitment not to do so made when Beijingjoined the WTO. "Theso-called performance requirements force or induce European companies totransfer technology to their joint ventures with Chinese partners in exchangefor the necessary administrative approvals by the Chinese authorities,"the Commission said. "Foreigncompanies are also required to carry out research and development activities inChina," it continued. Beijinghas said such transfers are voluntary not forced and that many foreigncompanies have benefited from the work on new technologies by R&D centersin China InJune, the European Union launched a separate WTO case against technologytransfers by China. This targeted specific provisions under Chinese regulationson import and exports of technology centered on Chinese-foreign equity jointventures. TheEU says this goes against WTO rules to treat equally national and foreigncompanies and unduly restricts the rights of EU companies, such as in relationto patents. TheWTO challenge will first result in consultations between the parties. If nosolution is found in 60 days, the EU can then request that the WTO set up apanel to adjudicate on the issue. (Reporting by Philip Blenkinsop Editing byAlexander Smith)
