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Time to give China the middle finger


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The Chinese government has decided to launch a system next month to force foreign manufacturers of digital household appliances and other items equipped with computing devices to disclose key information, The Yomiuri Shimbun learned Thursday.

The move is aimed at controlling the makers' products when their goods are made or sold in China.

Beijing likely has informed Tokyo and Washington that detailed provisions to enforce the system will be announced by the end of this month. The Chinese government likely will give manufacturers a grace period before implementing the system, but the new rules will be enforced after this period ends.

After the plan to introduce the system was reported, Japan, European countries and the United States urged the Chinese government to abandon the idea because it would make it easier for foreign companies' intellectual property to be passed on to Chinese competitors. Critics say Beijing's decision to launch the system despite opposition from other countries likely will cause an international problem.

The system will require foreign companies to disclose the source code for their products in a bid to rein in their information technology products made or sold in China.

Under the planned system, a Chinese government official would visit companies in Japan to check products.

If a company refuses to have its products inspected, those products will not be allowed to be manufactured or sold in China. No developed nation has this kind of system.

The system could cover a wide variety of products, including contactless integrated circuit cards, digital copying machines, ATMs and other products made by Japanese companies. As reasons for launching the system, Beijing cited prevention of computer viruses, among other reasons.

However, source codes can be used to crack ciphered information as used in IC cards, ATMs and other high-tech products. But this potentially could lead to companies being financially compromised and leakages of state secrets.

http://www.yomiuri.co.jp/dy/business...24TDY01304.htm

I say screw 'em...ship the jobs off to Indonesia, Malaysia, and elsewhere and have them sign agreements so that these kinds of stunts will not be pulled again in the future. This is going to come back to bite China in the end.

Edited by mustang84
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Why would they do this? I assume that companies value their intellectual property at a higher price than moving to another 3rd world country to produce their goods.

it's not just production... it's the sale of also.

The Chinese market will be closed to any company who won't disclose the IP.

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it's not just production... it's the sale of also.

The Chinese market will be closed to any company who won't disclose the IP.

Well screw 'em anyways, who thought it was a good idea to convert China/Russia/everyone else to capitalism and allow them to become a viable threat to the US anyways?

Perhaps history will repeat itself here, China will become isolationist again and the rest of the world will surpass it.

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I would hope our businesses have enough common sense to walk away from this. America basically did the same thing to Great Britain during the 18th and 19th century.

As a young country, our farmers and laborers had little of the technical knowledge that industrialists in Great Britain had. Everything we manufactured was inferior to British machinery. However, we managed to lure British innovators and engineers to America who then duplicated British technology (see: Slater the Traitor) and allowed us to catch up (and eventually surpass) the British at their own game. By the late 19th century, American railroads, textile production, and steel making were among the best in the world while Great Britain began to slip behind Germany and even France.

China could easily play this same game with us. They don't have the blueprints, but they have the workforce and the skilled labor to beat us at our game if they can get access. I really hope our companies do not sell themselves out, because the blow will be fatal.

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China doesn't understand the importance of, nor does it respect, the concept of intellectual property.

This will bite them in the ass, later if not sooner.

No ground can be given on this front.

In fact, the rest of the world needs to demand better protection for intellectual property as a counter initiative.

They've been stealing it wholesale for years.

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China doesn't understand the importance of, nor does it respect, the concept of intellectual property.

This will bite them in the ass, later if not sooner.

Ya..I was just listening to a podcast about the problem of counterfeit cell phones in China, including 'iClones'..i.e. iPhone rip offs. Since many of these phones (legit versions) are mfgrd in China, it's pretty easy for the mfgrs there to clone them quite cheaply.

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It's so the Chinese can copy the designs more easily. <_<

ding ding ding!

But seriously, that's it. The Chinese copy vehicles; now they want to copy electronics and other appliances.

Should send them schematics but replace all of the vital areas with pictures of gerbils running on wheels.

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As someone who works in one of the top IP firms in the country, listed As tier 1 in terms of Patent protection and prosecution this sure hits close to home.

China is trying to bully people out of their hard work and virtually close the tech gap overnight through trade blackmail.

I hope the US gov does something for a change and stand up to them by barring any US company from selling out their patents. There are plenty of places who would be willing to manufacture razor blades and circut boards for us.

Our IP and services industries are all this country has left. Maybe we can bring some manufacturing back home per chance? It would make some jobs....

This could seriously lead to a trade war. It smacks of Tom Clancy novels, especially Debt of Honor, executive orders, and the Bear and the Dragon. Debt of honor in particular is pertinent to this (a trade war starts between Japan and the US over the trade deficit and unfair trade laws.)

We certainly live in interesting times...

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