The emergence of this strategy in industry after industry has prompted complaints from foreign businesses and spilled over into public criticism from leading foreign industrialists. But companies such as Alstom and Siemens are reluctant to speak out about their difficulties because they fear being locked out of the market. Though they will not complain publicly, some foreign rail executives privately claim that in some cases their technology has been stolen outright and copied by joint-venture partners.
In a recent press conference, railway ministry officials dismissed concerns about forced technology transfer and IP infringement. “China has made use of technology from around the world and through great innovation has made it Chinese,” said He Huawu, chief engineer. However, foreign industry executives estimate that roughly 90 per cent of the high-speed technology used in China is derived from partnerships or equipment developed by foreign companies.
In private, officials from international train manufacturers operating in China say it is futile to complain to Beijing or initiate legal proceedings. Despite its claims that all its high-speed technology is now homegrown, the ministry has organised a team of lawyers and officials to investigate how vulnerable state rail companies will be to IP lawsuits when they start selling in the international market.