These and other rates should also be dramatically reduced or eliminated in order to increase U.S. exports and enhance the competitive growth of China's market. The Chinese government has targeted the electronics industry as a so-called Pillar industry, which means that it views the development of this industry as key to its national economic development. One way that China can do this is to insist that foreign firms invest in China and share their technology through joint ventures. The implied message is that such transfers are required to gain increased access to China's rapidly growing markets. While such technology transfer requirements are not spelled out in Chinese law, the government's practice is to persuade foreign firm to transfer technology for market share.
China currently restricts full participation and competition in basic telecommunications services.
Further, China maintains severe limits on content and transmission of data over the Internet. Competition in the communications sector will serve many mutual goals of both the U.S. and China. As China's own industries develop and the market becomes more competitive, it will be increasingly important to them to protect their intellectual property rights. Further, a strong intellectual property regime is essential to encourage foreign trade and investment. Consequently, these enterprises control a significant share of domestic and international trade in electronics goods in China.