American genius is under attack from China

Intellectual property theft and expropriation costs US businesses as much as $600bn a year, according to the Commission on the Theft of American Intellectual Property.

Think of what that means — more than 3 per cent of America’s gross domestic product is lost each year to theft, piracy and espionage. China is a primary culprit: it accounts for 87 per cent of all counterfeit goods seized at the border.

But this shocking statistic fails to capture the deeper danger posed by the manner in which Chinese companies and the Chinese government treat America’s intellectual property.

China has announced a “Made in China 2025” plan to dominate in the production of semiconductors, artificial intelligence, autonomous vehicles, biotechnology and every other high-tech industry likely to drive economic growth beyond 2025. The US, which remains the most innovative country in the world, stands firmly in China’s path.

But rather than building a globally competitive free market economy in order to compete, China has chosen instead to compel American companies that want to operate in China to turn over proprietary technology and intellectual property.