More intellectual property finds its way to China

Last year Colin Smith, director of engineering and technology at Rolls Royce, told a committee in the UK’s House of Commons, “From a company point of view, we do not do a lot of research in China because, frankly, I do not want my IPR stolen.”

Sadly for Smith, it is becoming increasingly clear that intellectual property rights (IPR) are not safe even outside of China.

Last month it emerged that the French government is investigating alleged theft of data on electric vehicles from Renault; data bound for China. Subsequently, it was reported that Chinese spies had been arranging elaborate fake job interviews to coax confidential details out of high ranking executives at unnamed firms and even using special shoes to steal parts from French factories.

In the most recent development a federal court in the US has convicted a former research chemist at Dow Chemical of stealing trade secrets related to an industrial polymer. Wen Chyu Liu, also known as David W. Liou, was also found guilty of perjury.


According to the Department of Justice Liu/Liou conspired with “at least four” other current and former Dow employees to steal details on a chlorinated polyethylene, which were then sold to companies in China.

“American industries thrive on innovation and they invest substantial resources in developing new products and technology,” said Assistant Attorney General Lanny Breuer in a statement. “We will not allow individuals to steal the technology and products that US companies have invested years of time and considerable money to create.”

All these incidents are unlikely to be connected. There is no evidence they are sanctioned by the Chinese government. Nor is such theft the exclusive preserve of China.

But China’s reputation for creative copying is now so entrenched that when it recently unveiled a new stealth fighter, news agencies were quick to ask the question: “Did China Steal U.S. Stealth Secrets?

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