Forced Technology Transfer and the US-China Trade War: Implications for International Economic Law

Abstract

Forced technology transfer has emerged from the US-China trade war as a new issue of systemic importance. The United States, the European Union and Japan have jointly condemned forced technology transfer as a practice undermining the proper function of international trade and called for new WTO rules to discipline the practice. This article examines the issue in the broad context of international economic law. It seeks to address the following questions: What does “forced technology transfer” mean? Where did this practice come from? Why is there insufficient international regulation on the issue? What exactly are the problems inherent in such practice? And what can be done to improve the relevant international regulation?

Keywords: technology transfer, US-China trade war, GATS mode 3, international investment

JEL Classification: K33