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Tech Purchases curbs bring complaints

China has brought into force regulations that could curb billions of dollars worth of sales of high-tech gear to government agencies, raising cries from companies across the globe and from the US government.

Jeffree Hardy of the BSAThe Chinese government posted on a website in late October a notice requiring vendors to gain accreditation for their products before they can be included in a government procurement catalog of products containing "indigenous innovation."

No one took much notice. Now it has dawned that this will make a major difference in government purchasing of technology.

 
Companies that aren’t listed in the catalog will theoretically be allowed to sell products to government agencies. But preference will apparently go to those listed.
 
The heads of the American Chamber of Commerce, the US-China Business Council, the National Association of Manufacturers, the Information Technology Industry Council and 30 others representing US, European, Korean, Japanese and Indian businesses have formally complained.
 
It is not quite clear on all issues but Jeff Hardee (seen in our illustration), vice president and regional director for BSA in Asia, which looks after software copyright matters, says "it does look like the intellectual property must be developed and owned in China, and it does look like trademarks must be originally registered in China."

Wall Street Journal
reports that IDC estimates public procurement will account for 14% of the 40 million PCs sold annually in China this year. The Chinese government is also a major purchaser of licensed software.

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