Press reports in early February indicated that the National Association of Manufacturers (“NAM”) solicited information from member companies regarding “credible real world cases” of forced technology transfer in China. NAM contacted members at the request of the United States Trade Representative (“USTR”).

The term “forced technology transfer” describes the pressure to relinquish technology (including trade secrets) that is exerted by the Chinese government and Chinese companies on U.S. companies that seek market access in China, or as a pre-condition to performing certain operations there. Examples of actions to compel technology transfer include action or inaction by the Government of China in government approval processes, or pressure exerted by Chinese business partners directly.

Trade organizations including NAM and other business entities routinely raise Chinese forced technology transfer issues in annual filings to the Special 301 Committee, which is a USTR entity that reports on intellectual property concerns annually. While it is possible that USTR sought information in connection with the annual Special 301 process, observers note that the informal January 27 deadline for submission of information suggested that USTR’s request could have instead been tied to preparations for the February 13-17 visit to Washington by Chinese Vice President Xi Jinpeng.