New York Times Flaunts Ignorance of China R&D Rules

Mar. 19, 2010 2:30 PM ETNYT, NWS16 Comments
Howard Richman profile picture
Howard Richman
In a story in the March 17 New York Times celebrating U.S. R&D moving to China (China Drawing High-Tech Research from U.S.), Keith Bradsher completely failed to mention the Chinese government’s new November and December rules requiring that American firms move their R&D and patents to China as a condition for doing business with the Chinese government.
Although the New York Times may have missed the story of these rules, the Wall Street Journal did not. On February 16 it reported that the Obama administration was responding with talk:

In an unusually broad response, U.S. officials from several government agencies have approached the Chinese to relay concern over the proposed rules, according to people familiar with the situation. "We are expressing our serious concerns with all appropriate counterparts in the Chinese government," said Carol Guthrie, a spokeswoman for the U.S. Trade Representative’s office.

Although Keith Bradsher was reporting from China, his sources may not include the U.S. Chamber of Commerce, the Business Roundtable, the Business Software Alliance, or any of the other 19 American trade groups, representing America's largest corporations in China, who wrote a January 26 2010 letter which explained the new rules and their threat to the American economy. Here is a key paragraph:

Of most immediate concern are new rules issued by the Chinese government in November to establish a national catealogue of products to receive significant preferences for government procurement. Among the criteria for eligibility for the catalogue is that the products contain intellectual property that is developed and owned in China and that any associated trademarks are originally registered in China. This represents an unprecedented use of domestic intellectual property as a market-access condition and makes it nearly impossible for the products of American companies to qualify unless they are prepared to establish Chinese

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Howard Richman profile picture
Dr. Howard Richman ( is one of three generations of a family of economists. Howard co-authors the blog Trade and Taxes ( and co-authored the 2008 book, Trading Away Our Future, published by Ideal Taxes Association ( He is a frequent contributor to Enter Stage Right, World Net Daily, and American Thinker.

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