The result is the illegal transfer of vast wealth and jobs from our society to theirs. Estimates range as high as $1 trillion dollars every year!! And, this is not even counting the vast wealth that is lost in equity values to shareholders that would come from the increases sales and profits American firms would realize if China was properly compensating them for their intellectual property, or directly purchasing the goods & services they offer. Imagine further the inroads into the vast Chinese marketplace that would be gained and the resulting benefits that would ensue as well. Are you angry yet!
There are great costs to USA taxpayers in other ways. When China rips off defense technology which compromises our country's defense or that of our allies, we as taxpayers must fund advances to recover our readiness. Each technological achievement can come at a hirer cost and brings greater complexity. So we're hit to create the original technology, that China steals and applies for pennies on the dollar, and then the USA has to pay again to improve or substitute the technology because we've lost our advantage. Are you angry now?!
For all the talk about China's currency manipulation you would thing that intellectual theft is not as big of an issue. Not so says an article in the NY Times. Plus, if we addressed the theft we would go a long way in addressing the under valued Yuan Renminbi because it would be in China's interests to have a stronger currency with which to purchase our intellectual property.
Intellectual theft is the single greatest threat to our our economy and our national security. A recent counter intelligence report sheds light on this topic. It is relatively short and easy to understand analysis - click here for a link to this report. It's time America got tough on foreign governments and industry that make it standard practice to steal from us and our allies.
We owe no diplomatic favors and allowing these countries to steal from us as a "cost of doing business" or to "maintain positive relations" is no longer acceptable. Every USA business should be able to file a challenge to the intellectual integrity of ANY importer into the USA and if there is a valid suspicion that importer or firm should be required to prove legal chain of custody of the intellectual property that was used to create that product before it is allowed into the USA. And if they fail to be able to establish genuine custody we should have enforceable reciprocal treaties with foreign allies that require them to reject those imports as well.
If you're as angry about this as I am then what do you think about this idea? If you ask me, I would deduct every dollar the Chinese have stolen from USA companies from the foreign debt we owe them. If we did that we would probably eliminate our national trade and budget deficit. And I believe it would be morally correct to do so! It's time to square away with China and Russia - if they want our citizens ideas, technology, designs, and inventions they have to pay for them! Stealing is an unacceptable economic development strategy and Chinese and Russian governments blatant endorsement for its practice must be intolerable!
To underscore how desperate China is for our innovations. It is interesting that not one Nobel Prize for science has been granted to a Chinese citizen! Considering the fact Chinese comprise 20% (one in five people) of the world's population this is starteling! Contrast this to an equally amazing set of statistics* below about Jewish contributors.
Jews currently make up approximately .002 (that is one fifth of one percent) of the world's population and only 2% of the US population.
Yet, 22% of all individual Nobel Prize recipients worldwide between 1901 and 2011, and constituting 36% of all US recipients during the same period, were of Jewish descent.
In the research fields of Chemistry, Economics, Physics, and Physiology/Medicine, the corresponding world and US percentages are 27% and 39%, respectively. Among women laureates in the four research fields, the Jewish percentages (world and US) are 38% and 50%, respectively. Of organizations awarded the Nobel Peace Prize, 25% were founded principally by Jews or by people of half-Jewish descent.
Breakdown by field:
Chemistry (32 prize winners, 20% of world total, 29% of US total)
Economics (28 prize winners, 41% of world total, 53% of US total)
Literature (13 prize winners, 12% of world total, 27% of US total)
Peace (9 prize winners, 9% of world total, 10% of US total)
Physics (49 prize winners, 26% of world total, 37% of US total)
Physiology or Medicine (54 prize winners, 27% of world total, 40% of US total)
See also data on "other Nobels":
Jewish Recipients of the Kyoto Prize (25% of recipients)
Jewish Recipients of the Wolf Foundation Prize (33% of recipients)
Jewish Recipients of the US National Medal of Science (38% of recipients)
*Source for the statistics on Nobel Prizes is Copyright © 2002-2011 JINFO.ORG.
Now consider this profound thought ... Do the Chinese have to steal because they are less intelligent and creative problem solvers and inventors, OR, they less creative problem solvers and inventors because they steal? Maybe if the Chinese government fostered a society that encouraged and rewarded innovation by protecting intellectual property that would go a long way to stimulating more inventions by Chinese citizens. Would the world be better off if 1/5th of the population stole the ideas from the others or if 1/5th contributed to the world of ideas? Come on China ... get with the program!!!!
