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Senator wants US to stop China from taking GM and Ford technology
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Monday, 19 Sep 2011
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It is reported that Senator Ms Debbie Stabenow urged the Obama administration last week to take steps to prevent the Chinese government from obtaining auto technologies from General Motors Co and Ford Motor Co.

The Lansing Democrat wrote US Trade Representative Mr Ron Kirk urging him to oppose Chinese efforts to demand US auto technologies.

She cited a news account "that China is attempting to pressure American automakers, including General Motors and Ford, to transfer core technologies of their electric and plug in hybrid vehicles to Chinese companies, in order for those vehicles to qualify for China's clean energy vehicle incentive program."

Ms Stabenow said the move would amount to a violation of World Trade Organization rules. She said "Forced technology transfers are already allowing Chinese companies to use American technologies to compete against American companies in industries such as water purification, high speed trains and wind turbines. In these industries, if US companies refuse to hand over engineering secrets, China threatens to deny access to the Chinese market."

She added that "These types of shakedowns are another example of China's disregard for fair trade and intellectual property, and its willingness to violate trade rules for its own advantage."

Concern over Chinese conduct is bipartisan. Republican presidential hopeful Mr Mitt Romney told The Detroit News earlier this month that the United States can compete with China.

Mr Romney told The News that "The success of the auto industry is evidence of my conviction that American manufacturing does not have to retreat in the face of China. American manufacturing can succeed. The idea that we have to see more and more products move from our shores to China is unacceptable."

A spokeswoman for the US trade representative didn't immediately return messages for comment.

Mr Greg Martin GM spokesman said the company has no plans to build the Chevrolet Volt in China. He said that "Senator Stabenow long running interest in automotive trade issues is nothing new and the letter is her own."

He added that "GM wants to help cultivate market acceptance for an early introduction of electric vehicles and our Volt plans remain unchanged. The car will be introduced as a fully imported vehicle because we want to get it over there quickly. As such, there is no local content requirement."

Ford Motor Co said in a leaked diplomatic cable from Wikileaks that it had experienced difficulty with a Chinese partner.

(Sourced from detnews.com)

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