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EU Files Complaint Against China Over High-Tech Patent Royalties at WTO

The European Commission has filed a formal complaint with the World Trade Organization (WTO) against China, accusing the country of “unfair and illegal” practices regarding the setting of global royalty rates for European Union (EU) standard essential patents (SEPs). This dispute centers on the pressure placed on European tech companies, particularly those in the telecom sector, to lower their patent rates globally without their consent.

Key Points of the Complaint:

  • China’s Role: The European Commission claims that China’s courts have been empowered to set royalty rates for SEPs, a move that allegedly forces European companies to lower their rates, thus providing Chinese manufacturers with unfair access to European technology at lower costs.
  • SEPs and Impact on Tech: SEPs are patents that protect technologies essential for manufacturing products that meet specific standards, such as 5G technologies in mobile phones. Major European companies like Nokia and Ericsson are holders of these patents.
  • Chinese Response: China’s commerce ministry expressed regret over the EU’s decision to take the matter to the WTO, affirming that it would address the issue in accordance with WTO rules while safeguarding its rights and interests.
  • Previous Related Dispute: The case is connected to another ongoing WTO dispute filed by the EU in 2022, regarding Chinese anti-suit injunctions that hinder the ability of telecom patent holders to enforce their intellectual property rights in courts outside of China.

Steps Forward:

  • Consultations: The European Commission has requested consultations with China as the first step in WTO dispute resolution. If an agreement is not reached within 60 days, the EU may request the establishment of an adjudicating panel, which typically takes around 12 months to resolve.

German TikTok Users Show Greater Sympathy for China, Russia, Poll Reveals

Germans who rely on TikTok for news are less critical of China and Russia and more skeptical of climate change and vaccine effectiveness compared to consumers of traditional media, according to a recent survey by Allensbach, commissioned by a foundation linked to Germany’s liberal Free Democrats.

The poll highlights that only 28.1% of TikTok users fully agreed that China is a dictatorship, compared to 57% of newspaper readers and 56.5% of public TV viewers. Similarly, just 13.6% of TikTok users supported Western backing for Ukraine in its war against Russia, a view shared by 40.2% of national newspaper readers.

The findings come amid U.S. debates on whether to enforce a ban on TikTok over national security concerns, adding weight to arguments that the Chinese-owned app spreads misinformation that could undermine democratic societies.

Key Findings:

  • Perception of China: TikTok users are less likely to view China as a dictatorship.
  • Views on Russia: Fewer TikTok users see Russia’s invasion of Ukraine as illegal or support Germany aiding Kyiv.
  • Skepticism on Vaccines and Climate Change: Only 69% of TikTok users under 29 agreed that vaccines saved millions of lives, compared to 71% of all under-29s.
  • Distrust in Media: TikTok users are more likely to distrust traditional Western media and to believe the German government spreads misinformation, while being less critical of disinformation from China and Russia.

These attitudes align with broader trends among younger Germans, who are TikTok’s core demographic and have shown increased support for the far-right Alternative for Germany (AfD) party in recent elections.

Disinformation Concerns

The survey also raises alarms about foreign actors, especially Russia, spreading disinformation via social media platforms to advance their agendas. Researchers cited parallels with Romania, where a pro-Russian outsider gained significant traction through social media campaigns in a presidential election later annulled.

Sabine Leutheusser-Schnarrenberger, deputy chair of the foundation behind the survey, emphasized TikTok’s influence, saying, “Young people are far more vulnerable to information, and TikTok plays a decisive role. We mustn’t allow Chinese and Russian misinformation to spread in our midst.”

TikTok’s parent company, ByteDance, has not commented on the survey.

 

U.S. Lawmakers Call for Scrutiny of Baicells, Chinese Telecom Firm

Baicells, a Chinese telecom hardware manufacturer founded by former Huawei employees, is facing heightened scrutiny from U.S. lawmakers over national security concerns. John Moolenaar, the top Republican on the House Select Committee on China, emphasized the need for rigorous government oversight of Baicells, citing potential cyber vulnerabilities in the company’s products. He warned that any presence of such companies in U.S. networks, particularly in sensitive areas, should raise significant national security alarms.

Despite Baicells’ reassurances that its products do not pose security risks, the company is under investigation by the FBI and the U.S. Department of Commerce. The company has provided base stations and routers to more than 700 U.S. networks, including those near military installations. The U.S. Cybersecurity and Infrastructure Security Agency (CISA) has flagged Baicells’ firmware for cyber vulnerabilities, further raising concerns.

Baicells’ chairman, Sun Lixin, defended the company by stating that all tech companies, regardless of their size, continuously release updates to address security vulnerabilities. He also expressed willingness to cooperate with U.S. inquiries.

The scrutiny of Baicells is part of a broader concern in Washington over the potential for Chinese-linked companies to compromise U.S. telecommunications networks. U.S. officials have warned that China-linked suppliers, including state-backed hacking groups like “Volt Typhoon,” could exploit network vulnerabilities for espionage.

Democratic leaders in Congress, including Frank Pallone and Mark Warner, have called for greater accountability and quicker responses to national security risks posed by foreign adversaries in U.S. telecom networks. They argue that focusing on individual companies without addressing systemic risks is insufficient to protect critical infrastructure.