Friday, January 7, 2011

Who is Stealing Your China Trade Secrets?

 


Intellectual property theft always an inside job


What is the big hu-ha about companies getting their intellectual property stolen in China? How could that be? Companies that have operations in China do not keep their files in China. They mostly likely, and these refers to the majority of western firms, do not have anything of value kept in a Chinese office. Nay, all these complaints are propaganda! Just ask yourself, if you have your research and development set up based in the US or Europe, would you put them (the data) in Beijing? Or you have it locked up in San Francisco? Most western firms having operations in China is only using that place because of the cheap labor. For manufacturing firms, China serve as a backyard factory as the labor cost is ten times cheaper than the US. And you only need to keep your finished model in China for reference. The rest of the development data you keep away from China. So, what sorts of intellectual property has got stolen in China?


How about those that provide services like Google and Yahoo? Are their intellectual property  really being stolen in China? Or was it because the Chinese authorities are getting edgy about its own citizens pilfering information to an outside party? There is no way secrets can get stolen in China, purportedly by Chinese spies. There is however a possibility that some trade secrets are being stolen, not by Chinese, but by their own people. Certainly, many of these western firms are manned by their own kind. and some of these are senior stuffs who might be thinking of getting a fast buck. They sold off secrets, or purportedly secrets, but are of not much use. In reality, some of the bigger Chinese companies do have their own R & D departments. manned by a mix of indigenous Chinese and westerner.  There are also some Chinese who were recruited due to their expertise whilst they were working in the west. Obviously, both are highly paid. And the leak, if there are any, will most likely come from inside the firm. After all, who will know of what data is available and who will know how valuable it is?



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