U.S. investors are funding China-based companies that steal intellectual property from American companies, experts say. China-based companies that replicate stolen IP in critical technologies like semiconductors are even more likely to be funded by U.S. investors, because they become subsidized by the Chinese Communist Party (CCP), Derek Scissors, senior fellow at the American Enterprise Institute, has said at a House Indo-Pacific Subcommittee hearing. He cautioned that the United States was effectively encouraging China’s communist regime to become a better “predator” of IP due to its failure to place restrictions on investments in Chinese companies that steal from American companies, including those engaged in the manufacture of products banned from export to China. The most notable example is Chinese companies that steal the IP necessary to help develop advanced semiconductors. These semiconductors are now banned from being sold to China, Scissors said, but there are no restrictions to prevent Americans from funding Chinese companies that build them in China with stolen technology, reports The Epoch Times.
