Written Testimony from the

Semiconductor Industry Association

Regarding

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“Countering China: Ensuring America Remains the World Leader in Advanced

Technologies and Innovation”

Hearing by the House of Representatives Committee on Oversight and Government Reform,

Subcommittee on Information Technology

September 26, 2018

Countering China: Ensuring America Remains the World Leader in Advanced Technologies and Innovation

Subject

Countering China: Ensuring America Remains the World Leader in Advanced Technologies and Innovation

Date

September 26, 2018

Time

10:00 am

Place

2247 Rayburn HOB

PURPOSE:

To discuss the effects Chinese trade practices have on American companies working to enter Chinese markets and to examine how to protect American economic and security interests.

BACKGROUND:

China has aggressively acquired American intellectual property through legal and illegal means, including espionage, state-sponsored theft, forced technology transfers, and the use of “back doors” to encryption technology.

In September 2015, the United States and China signed a memorandum of understanding agreeing neither nation would “conduct or knowingly support cyber-enabled theft of intellectual property, including trade secrets or other confidential information, with the intent of providing competitive advantages to companies or commercial sectors.” China remains a threat to American business.

In August 2017, the U.S. Trade Representative (USTR) initiated an investigation into Chinese Trade Practices under Section 301 of the Trade Act of 1974. USTR reviewed Chinese laws, practices, or actions that may be discriminatory or unreasonable and harms innovation, intellectual property, or technology development.

Witnesses and testimonies:

John Neuffer

President and Chief Executive Officer

Semiconductor Industry Association

Robert Atkinson, Ph.D

President

Information Technology and Innovation Foundation

Dean Cheng

Senior Research Fellow, Asian Studies Center

The Heritage Foundation

Sarah Cook

Senior Research Analyst

Freedom House

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