In an earlier article I reported that a writer had said that the Chinese used threats to force companies to move to China. At that time, I said I would look into the charge.

I have looked into the charge. This is what I found out.

China will not let some companies do business in their market without moving operations to their country.

Companies that move there are subject to unexpected laws and at least in one case, the arrest of its agents until they signed over their Chinese assets to the Chinese partner.

They are forcing companies to register thier patents in China giving that country a great deal of technology that is patented in other countries, particularly the U.S.

They are forcing auto companies operating in China to consolidate  with other companies to form new companies up to a certain size or lose the right to do business in China.

Corruption in China may be as much as ten percent of the gross national product with bribes and shake downs a normal part of doing business.

China has used threats in its foreign policy to gain access to markets, to force countries to accept its goods and it make sure its dissidents are not supported.

China has been doing industrial espionage on a large-scale for years.

China has developed an enormous cyber warfare apparatus and has used it against other countries, essentially an act of war.

Based on what I have found, there is no direct evidence of China telling a company, “move here or else.”

James Pilant