US warns China of 'technological isolation'
Thu May 8, 9:24 PM ET
http://news.yahoo.com/s/afp/20080509/pl_afp/uschinatechnology_080509012409
WASHINGTON (AFP) - The United States warned China Thursday that it
risked "technological isolation" for developing unique technical
standards of its own that also are shutting out foreign competition.
Despite widely accepted international standards, China developed
standards mandated by government regulations amid a lack of
transparency and due process, said Under Secretary of Commerce
Christopher Padilla.
"These requirements certainly provide Chinese domestic companies an
unfair advantage, but they also carry great risks for China," he told
a conference in Washington on standards and innovation in China.
In the 1980s, he said, Japan thought its market was large enough to
justify unique technology standards that would eventually move the
world in its direction, to the benefit of its companies.
"It was wrong," he said.
"Now China runs the same risk of turning itself into a lonely island
of technological isolation, cut off from the world by government-
mandated, China-unique standards that are out of line with where the
market-driven global economy is heading."
Many American companies have expressed concern about security
standards for information technology products that made it costly for
them to enter the Chinese market, said Padilla, who is policy chief
for international commerce.
"We see this happening in other areas as well, including
telecommunications, electronics, digital media, and software," he
said.
Citing as an example, he said it appeared that Beijing favored a China-
specific third-generation (3G) mobile phone standard over
internationally recognized standards.
"While China's approach may appear to provide a competitive advantage
in the short term, it in fact inhibits collaboration, limits product
development, reduces consumer choice, and hinders China's
competitiveness and growth," he said.
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