Read the article here: Is IBM handing over key IC technology to China?

The one reason this should probably be encouraged is that it offers China the opportunity to transfer technology the 'right' way, rather than the 'wrong' way. The more long-term technology transfer contracts we have in place with China, the more leverage we have over them to terminate all transfers unless they play fair on cloning, counterfeiting, brand dilution, etc.

ryankenny: "The one reason this should probably be encouraged..." Dream on! Right way, or wrong way, China will do what ever it takes to "acquire" technical know how, being it semiconductor, automotive, software, etc. How does this give us leverage over China? In time they will take IBM's licensed foundry processes as a knowledge base, throw resources/$$$ at it, and jettison IBM. If the Chinese don't play fair in a few years, see ya IBM! Just look at China's insatiable appetite for natural resources like oil. They will make deals with evil regimes like Sudan and Iran to please themselves. No regard for what these regimnes do to their own citizens. Wake up America!

jer9ball makes a good point. I'm not in America, but read EETimes, too. I've made a similar point to this before and no doubt, I'll make it again: we Europeans are charactured by Americans for being a bit left wing, yet time and time again I read articles in like this in EETimes, which show that you American's really don't get capitalism and free trade at all. I wonder where your characture of a right wing, freedom-loving nation come from? It certainly isn't presented in the pages of EETimes.

jackOfManyTrades, "which show that you American's really don't get capitalism and free trade at all". Nothing like generalizing the knowledge of a population of 300 million from a few articles in a generally liberal magazine. Most all of us "get it', but many don't agree with it.

Bryan 93 ? - "Nothing like generalizing the knowledge of a population of 300 million from a few articles in a generally liberal magazine". A fair point. I guess I am generalising from many articles in this magazine and the vast majority of comments posted underneath them.

Hummm, I wonder too, perhaps it because of things like Tiananmen Square massacre, protests by ethnic Uygurs, Tibetan sovereignty, Communist government, ...?

Naaa, must be something else (perhaps bad Chinese take out food experience?)

In my opinion, here's why this article--and debate--is important: China has shown little or no respect for IP.
Want some evidence? There is a pattern here. Here's a tip of the iceberg:

1. Trial to begin in economic espionage case involving China That story can be read here.

2. Beijing Auto says watching ex-Ford engineer theft case That story can be read here.

3.TSMC vs. SMIC Trade Secrets Trial Heats Up That story can be read here.

4. The U.S. Department of Justice announced the arrests of four individuals on Monday and accused them of stealing military and aerospace secrets and sending them to China. That story can be read here.

5. IC-equipment and materials suppliers face mounting challenges in intellectual property (IP) protection, warned a new study published by SEMI. That story can be read here.

6. In its 2007 Report to Congress, the U.S.-China Economic and Security Review Commission (USCC) calls Chinese espionage the top threat to U.S. technology. That story can be read here.

7. Two men were indicted on charges of conspiracy to commit economic espionage and to steal trade secrets at NetLogic Microsystems Inc. and Taiwan Semiconductor Manufacturing Co. Ltd., according to officials. That story can be read here.

8. In a suit filed with the California Superior Court in Alameda County, Taiwan Semiconductor Manufacturing Co. is again going after Semiconductor Manufacturing International Corp., alleging that the Chinese foundry is still using stolen trade secrets as the key ingredient in its process recipes. That story can be read here.

9. Intellectual-property theft in China isn't going away anytime soon. That story can be read here.