The Growing Threat of China Disregarding IP Rights

The Growing Threat of China Disregarding IP Rights

The third consequence of the ongoing trade tensions with China is the potential for a massive intellectual property (IP) crisis. A recent State Council meeting in China outlined new measures that could escalate the IP theft issue. If China decides to disregard IP rights, this would mark a dangerous shift, allowing them to steal and replicate American innovations on a global scale.

What does this mean? China could start openly copying and distributing products like Microsoft Word for $5 or producing American manufacturing blueprints and designs, selling them globally for pennies on the dollar. With their immense manufacturing capacity and lower production costs, they could flood markets, undermining American businesses and sending shockwaves through the global economy.

But it doesn’t stop there. China is also developing cutting-edge semiconductor technologies and could potentially move the semiconductor base from Taiwan to China by 2026. This would give them control over everything from energy, minerals, and manufacturing to software and semiconductors, making them an unstoppable force in global technology production.

If China decides to turn a blind eye to IP rights and move forward with this strategy, America's reliance on IP could be at risk, putting us in a seriously disadvantaged position. The consequences for US businesses and the global market could be catastrophic.