Welcome
Thursday, September 02, 2010
Thursday, September 02, 2010
Latest Procurement News
Posted: Friday, December 18, 2009, 10:37AM
SPONSORED LINKS
RELATED NEWS
- Gold imports to India surge
26 Aug 10 - Singapore crowned world's largest container port
26 Aug 10 - Analysis: The impact of airline alliances
24 Aug 10 - Markets bet on wheat and corn price hikes
24 Aug 10 - Coffee and sugar markets surge
23 Aug 10 - Strong animal feed sales fuel doubling of profits for Cargill
19 Aug 10
RELATED ARTICLES
- Sustainability: Cargill to assess palm oil suppliers
- World View: China not losing appeal as sourcing destination
- Profile: Siemens CPO, Barbara Kux
- In Focus: Wages issues in China impact on global sourcing
- Economic View: The impact of depegging the yuan
- World View: Clear communications key to China sourcing
KNOWLEDGE MANAGEMENT TAGS
"Global Sourcing"
China mulls 'buy Chinese' state procurement directive
Chinese proposals that have been drafted to force the country's government to favour products from China when it comes to public procurement could create headaches for foreign firms, according to media reports.The directive, which was published last month, applies to any firm attempting to supply products to the Chinese government including technology, hardware, software and renewable energy. It states that in order for these products to be authorised for national purchase, they must include patents owned by a citizen or company in China.
They can only be licensed under the terms of an agreement that prevents foreigners or foreign companies from controlling the intellectual property covered by the patent.
The rules also stipulate that only products with trademarks that were first filed in China and are not controlled by foreigners will be eligible, according to the Financial Times.
"There will probably be some high-profile cases in certain industries, but it should be possible for foreign companies to qualify," Elliot Papageorgiou, a patent expert at Rouse in Shanghai, told the FT. "This is a fine-tuning in line with China's existing national intellectual property rights strategy, and this approach has been consistent."
"The worst case would be if that 'control' were interpreted to mean ownership of the legal entity in China by a foreign parent," Papageorgiou added.
"Then only a company with 51 per cent Chinese ownership and Chinese management control is likely to meet the conditions.
Other experts were more pessimistic: "This defies the principles of multinational companies," Wang Xiang, a partner at Orrick Herrington & Sutcliffe in Beijing, told the FT.
"Even intellectual property developed in China by a multinational is usually not held in China, even if patents are filed here to protect it, because multinational companies manage their IP globally."
Procurement Tags - China, Global Sourcing
= Associate Members Only 
