China's "Indigenous" Intellectual Property Government Procurement Policy

This is yet another amazing example of Chinese protectionism, or way beyond protectionism, gosh darn brazen unfair trade practices.

The Hill is reporting Tech groups are trying to get something done on China requiring patents be developed and registered locally for all government purchases. This isn't the product, this is the advanced R&D behind the product!

Wondering now why so much U.S. advanced R&D has moved to China?

China has imposed new procurement rules there require government agencies to purchase equipment only from businesses that develop and register their intellectual property patents locally.

But that policy -- referred to as "indigenous innovation" -- essentially prevents U.S. and other international firms from selling countless tech goods to the Chinese government, the state's biggest purchaser, according to insiders.

Why is this such a big deal? Because the United States still is a leader in patents and innovation (ahem, in spite of what you might heard most of this is developed by Americans). So, let's say the U.S. turns around and does the same thing to China. Big lousy deal because the innovations and patent pools that are, to use China's words, indigenous are minuscule by comparison.

While the article is on tech trade groups lobbying the U.S. Congress and administration to do something, here's the end game:

Ultimately, Dabbs said he and others recognize China is unlikely to reverse its policy immediately. But he did predict Beijing would eventually "come around on this and realize what they're doing is really going to stifle innovation in their own country and not allow for Chinese companies to sell on a global level."

"They [want] to own, operate and innovate everything, and that's just not the way the world works," he said.

And you think somehow Buy American provisions for stimulus are such a big deal? I think not!

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