technology transfer

China's Indigenous Innovation Policy Bigger Threat to the U.S.. Economy Than Offshore Outsourcing

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china espioinageDid you know Silicon Valley's best export is American jobs? That China has a new policy which is a bigger threat to the U.S. economy and jobs than direct offshore outsourcing has been?

The U.S.-China Economic and Security Review Commission held a hearing, China’s Five Year Plan, Indigenous Innovation, and Outsourcing and contained within are more damning facts about China running amok in terms of capturing U.S. industry for themselves.

China lays out economic strategies by five year detailed plans. The latest calls for Chinese investments, that's government investment, of up to $1.5 trillion to develop alternative energy, biotechnology, information technology, advanced equipment manufacturing, alternative fuel autos and other energy saving, environmental technologies.

China's indigenous innovation policy means corporations are forced to technology transfer to China their intellectual know-how, advanced technologies in order to even do business in China and certain to obtain Chinese government contracts.

China's Five Year Plan

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12_5_year.jpgDid you know China has a five year plan? They do and it's a doozy according to a U.S. – China Economic and Security Review Commission. Yup, China has a strategy in play and it's on Indigenous Innovation and Technology Transfers, and Outsourcing. From the opening statement:

Since 1953, the Communist Party of China has used a series of five-year plans to guide China’s economic and social development. In its newly-adopted 12th Five-Year Plan China makes clear that it hopes to move up the manufacturing value chain by making explicit mention of Strategic Emerging Industries, which the Chinese government would like to see dominated by Chinese firms. These industries are: New-generation information technology, high-end equipment manufacturing, advanced materials, alternative-fuel cars, energy conservation and environmental protection, alternative energy, and biotechnology. China’s goal is to take the Strategic Emerging Industries from a current combined share of 3% of Chinese GDP to 8% by 2015 and 15% by 2020.

Anyone name America's 5 year plan? Beyond destroying the U.S. middle class and American workforce, can anyone even think of one? China, on the other hand, is methodically going about dominating a host of advanced technology industries and capturing our jobs in that process.