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Title: "The Rise of China in Technology Standards: New Norms in Old Institutions"
Authors: Dan Breznitz Associate professor at the Scheller College of Business, Georgia Institute of Technology
Michael Murphree Research Project Director at the Sam Nunn School of International Affairs at the Georgia Institute of Technology
Publication Date: January 16 2013
Free/Fee: Free Access
Reads: 2421
Abstract: China's efforts to develop unique technology standards and its rapidly increasing activities as a participant in international standardization efforts have drawn widespread attention. China does use technology standards as a protectionist tool. However, a complete review of the standardization system reveals that: i) protectionism is not the major focus of Chinese standards development efforts; and ii) it is not the main challenge China poses for American firms. This report addresses six broad areas of interest that are critical to understanding Chinese technology standards efforts and their implications: - Unique or exclusionary technology standards have neither been commercially successful nor fully exclusionary - Unique standards efforts are an effective trade tool, particularly in lowering royalty rates for Chinese firms - The main challenge China poses in standardization is in establishing new norms, particularly advancement of a cheap royalty options to the holders of standards-essential Intellectual Property Rights (IPR) - China is rapidly increasing its skill and sophistication in global standards organizations and building deep knowledge of their regulations, fostering potential advantages in negotiations - Technology standardization in China remains legally governed by laws and administrative apparatus developed for, and at the time of, the planned economy - An expansive role for the state in standardization is the accepted norm in China.
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