Mubasher: The European Union (EU) on Thursday challenged China at the World Trade Organization (WTO) over its systemic forced technology transfers.

The move significantly broadens and deepens the scope of its WTO action against Chinese measures on forced technology transfers, the European Commission said in a statement.

The Chinese laws imposed requirements on foreign companies in China, in violation to a commitment made when it joined the WTO, the European Commission said.

“The so-called performance requirements force or induce European companies to transfer technology to their joint ventures with Chinese partners in exchange for the necessary administrative approvals by the Chinese authorities,” the Commission said.

Moreover, foreign firms are also required to carry out research and development in China, the EU’s executive arm said.

The challenge would first result in consultations between the EU and China.

If no solution is reached within 60 days, the EU can request that the WTO set up a panel to adjudicate on the matter.

The challenge against China complements a WTO case filed last June.

The EU lodged a complaint against technology transfers by China, targeting specific provisions under Chinese regulations on imports and exports of technology centred on equity joint ventures with foreign companies.

The US filed a complaint to the WTO about Chinese policies on technology transfer and intellectual property protection, while the Trump administration slapped tariffs on $50 billion in Chinese imports to force change.

The EU, the US and Japan have held talks this year to cooperate in combating unfair competition from subsidies, state-led enterprises and forced technology transfer, without specifically naming China.