A major trade sticking point between the U.S. and China has deep roots
This marketplace podcast is brought to you by. Indeed, are you hiring with indeed you can post a job in minutes set up screener questions than zero in on your shortlist of qualified candidates using an online dashboard get started today at indeed dot com slash marketplace. That's indeed dot com slash marketplace. And by topa athletic making shoes for running walking, fitness and recovery all featuring their economy. Roomy toe box natural fit and low draw platform. Do your body a favor and visit topa athletic dot com slash tech. And join others who have done their research. Get ten percent off your first bear using the promo code tech at checkout on to- athletic dot com. T O P O athletic dot com. Promo code tech. A little technology shared between friends. What's the big deal from American public media? This is marketplace tech. I'm Tracey Samuelson in for Molly would. This week trade talks continue between the US and China. US officials complain that China has long failed to protect US intellectual property rights, a charge China rejects in particular, the US wants China to put an end to what's known as forced technology transfers, that's when US companies have to share their valuable tech secrets with local partners in order to access. China's much coveted market finding a solution has been a big sticking point in trade negotiations and the history of countries sparring over IP issues, actually goes back centuries. Greg Clark is a professor of economics at the university of California Davis. He says in its infancy, even the US took advantage of some stolen tech v was the norm throughout history old ways since the industrial revolution and the British stole a bunch of their technology from the Italians and and turn the American stole most of their textile technology from the British Samuel sleigh. After a British apprentice in textile mill carefully memorized, the plans and set sail from Erica and became the father of the American textile industry and indeed the kind of father of the American industrial revolution. And so how do you think we should be thinking about this today? If those were sort of celebrated figures for the technology that they they brought back home a yeah. No, I think you you all in that perspective what the Chinese are. Now attempting to do is absolutely the pattern of history. And there's actually a lot of debate about whether such property rights hinder or advance technological progress. Yeah. I suppose if your whether or not you think someone's the hero of the struggle depends on whether you're on the receiving end of that technology or whether you're on the theft. Then yes, though, the one thing I should say is that the British act. Actually by eighteen forty two abolished all attempts to restrict the flow of technology out of Britain. They just sort of gave up. Yes. Because by then the Riveria significant equipment manufacturing firms that wanted to profit by the export of the machines that embodied the new technology, and the other reason that the British change their attitude was that the British actually had such an efficient manufacturing system that they actually didn't need to worry about other people getting the technology. But the thing is I think now that is not going to be the case that in manufacturing Chinese labor costs will allow them to undercut America. And so you're not going to be able to say, well, it doesn't matter if they get our technology, we can still actually compete. Greg Clark is an economics professor at the university of California Davis if the US and China don't reach an agreement by March first. Tariffs on two hundred billion dollars worth of Chinese imports will jump from ten percent to twenty five percent. The Trump administration wants enforceable commitments from China on intellectual property and other structural trade issues. But what that looks like for either side isn't yet clear. I'm Tracey Samuelson. And that's marketplace tech. This is APN. Hi, I'm Zach and I listened to marketplace in Arlington Virginia. I think what I appreciate the most about marketplace's their ability to take the economic news of the day issues such as tariffs rate hikes and tax reform cut through the political noise, and clearly and concisely explained not only how these issues affect our country and the rest of the world, but how they impact people like me. I hope you'll consider joining me as marketplace investor and donate today at marketplace dot org to help make their work. Possible place podcast is brought to you by well frame does your healthcare organization. Give people the support they need outside the walls of care delivery. It's time for a new approach. 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