Thursday, February 01, 2007

Weak IP or Strong IP in China: Jobs Will be Lost Outside China

Peter K. Yu, associate professor of Michigan State University has written another interesting article: 'History shows trade protectionism won't contain China's auto effort', using the car industry as illustration.

Yu reasons:

Rampant infringement of intellectual property in China is costing jobs in the US and elsewhere. But if the level of intellectual property protection in China goes up, more foreign direct investments will flow to China which will cost jobs in the US and elsewhere.

Yu proposes instead of demanding free trade and stronger intellectual property protection, which is gratuit, you might better answer questions such as:

"Do we want to make our industries more competitive? Do we want to reduce the loss of American jobs? Do we want China to be politically stable to advance our interests in the Pacific Rim? Do we want China to grow into a more desirable trading partner that respects democracy and the rule of law?"

What do you think?

Read Yu's article here.

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