- Sep 10, 2012
The leverage would be "If you don't work with us, we'll make it difficult for you to make money in the Chinese market". That strategy has worked in the past, where companies had to partner with a domestic Chinese entity in order to even do business in China.They don't really have any leverage to force any of the above companies to cooperate with this. Sticks won't work, so they'll need one hell of a big carrot. And they know going in China's goal is to steal their IP, so why would they believe any lofty talk about "collaboration"?
We'll see how this plays out for now. So far, the language does not suggest China will strong-arm companies to partake, only to provide financial backing for collaboration. If no one bites at the carrot, perhaps we'll see China reveal their true hand.
The committee will encourage collaboration between foreign and Chinese companies and research institutions. It will also invite foreign companies to set up development or manufacturing bases by working with local governments and providing funds. It also envisions offering financial backing to Chinese companies seeking to acquire overseas semiconductor-related companies.