The Nature of the Relationship between American Multinational Corporations and Chinese Businesses and Its Effect on the Problem of Intellectual Property Law

Abstract

Intellectual property rights (IPR) have become a major problem in the relationship between the industrialized West and the developing South, primarily because the West demands that developing countries adopt and enforce Western IPR. Since the relationship between US corporations and Chinese businesses is among the most successful and at the center of the current process of globalization, IPR have been a major cause of conflict and controversy between them and serve as an exemplar for this thesis. I argue, first, that the reason that a large number of Chinese businesses, especially privately-owned small and medium-sized enterprises, infringe foreign IPR lies in the nature of the difference between what have been mostly low-tech traditional Chinese businesses and high-tech industrial economies, to which intellectual property laws belong. Second, I demonstrate that the steady improvement of intellectual property protection in the more successful areas of development in the Chinese economy suggests that the solution for improved IPR protection in China and perhaps other emerging nations will follow, not precede, the development and transformation of a low-tech pre-industrial economy into an industrial high-tech economy.