On May 28, 2018, Chinese Ambassador Zhang Xiangchen rejected US allegation over China has mishandled joint wander necessities to accomplish innovation exchange, saying the United States is one of the primary recipients of technology transfer.

Zhang said, “The transfer of technology from the US companies to China is a normal business. It is done based on mutually agreed terms between the businesses, and such transactions represent the companies’ own will.” Further, Zhang added, “the principles of commercial considerations, contractual freedom, and market competition are fully observed in these transactions.”

Dennis Shea, the United States Ambassador explained that forced technology transfer was an unwritten rule for companies trying to access China’s marketplace if they were partnering with a state-owned. Sources stated that the United States is the largest beneficiary of technology transfer, however, China is one of the main export destinations of US technology.

Last month, the Trump administration proposed tariffs on a list of Chinese goods worth $50 billion based on the Section 301 investigation into alleged Chinese intellectual property. Technology transfer was only a typical business action that profited the United States while Chinese advancement was driven by the determination and enterprise of the Chinese individuals, interest in instruction and research.

According to WTO rule, if disputes are not settled amicably after 60 days, the complainant can ask for a panel of experts to adjudicate, escalating the dispute and triggering a legal case. On March 23, US launched its complaint could have used the disputed meeting on Monday to take that step.