Article: Intellectual property theft is top risk for firms with operations in China; International pressure placed on China to effectively enforce laws.(Spotlight: China: Risks & Rewards)

Byline: GLORIA GONZALEZ

Foreign companies expanding into China face a boundless and potentially costly risk-the theft of their intellectual property.

China is widely considered to be the most problematic country in the world with regard to violating intellectual property rights. Among U.S. trading partners, China was the No. 1 source of counterfeit products seized at U.S. borders, accounting for 81% of the total value of seized products, according to the U.S. Customs & Border Protection agency (see chart).

Intellectual property risks are among the top three operating issues currently facing multinational companies with operations in China, ...

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