Position On The Relationship Of U. S. Technology Companies With China Case Study

1171 Words5 Pages
The American Technology Council
Elaine Duke - Acting Director of Homeland Security
Albany High School
Position on the Relationship of U.S. Tech Companies with China
The future of America’s dominance in the international technology sector is no longer secure. The emergence of countries such as China, whose economy functions under different operating framework than the United States, gives China a competitive advantage over the U.S. that poses a legitimate and imminent threat to the success of U.S. tech companies (Fallows). Not only does this unfair dynamic affect the U.S. tech market, it also threatens the stability of Sino-American relations (McCurry). This issue is deeply concerning to the Department of Homeland Security. The security
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Passive counter-hacking is defined by the Chicago Council on Global Affairs as defensive behavior that meets the following criteria: The counter hack does not have an adverse effect on the perpetrator, the counter-hack is not performed in immediate retaliation for the theft of IP, and lastly the counter-hack does not access restricted systems (Babitch). Passive hacking will deter IP theft from foreign companies and states while mitigating the risk of accidental offensive hacking against innocent companies. Not only do Chinese companies and state-actors steal American intellectual property, they also use this stolen IP to unfairly compete with American companies in the Chinese market. This is done through the China Compulsory Certificate (CCC). All foreign companies must obtain this safety certificate before participating in Chinese markets (Blair). However, when the certification is obtained China demands that companies provide detailed schematics of their products which the Chinese government then provides to Chinese companies, enabling IP theft and counterfeiting (Blair). To solve this problem the DHS proposes that the CCC commision submit itself to a non-partisan international oversight body which will protect the safety of Chinese consumers, the stated purpose of the CCC. Moreover, the oversight body will ensure the CCC is not abused to disadvantage foreign companies. Understandably, political pressure will be needed to ensure that China allows this policy.

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