Sector Primers — Technology

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The Chinese government is aggressively encouraging domestic and foreign invested companies to develop, co-develop and acquire various technologies viewed as critical to China’s long-term global competitiveness. This policy change means that attractive opportunities are currently available for foreign companies in technology oriented industries, including Internet, software development, information technology (IT), cloud computing, gaming and clean technology.

Despite these opportunities, serious challenges remain for international companies active in these fields. As counterfeiting and piracy issues are common in China and the enforcement of intellectual property rights (IPR) is selective, foreign investors must carefully weigh the risk of losing proprietary technology against the benefit of entering the China market. Certain practical measures can be implemented as part of a well-designed China strategy that enables a foreign technology investor to succeed at an acceptable level of risk.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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