"Enforcement and protection of intellectual property – the DNA of new products and technologies – is essential for U.S. companies to compete successfully in a global economy. This is impossible if companies in countries such as China are brazenly stealing trade secrets through industrial and cyber espionage," McGahn said. "China's president, Xi Jinping, recently said that China will protect legitimate rights of foreign enterprises. However, to date, the experience of companies like AMSC has proven otherwise. In the E.U., our former employee confessed to collusion with Sinovel, was convicted and jailed for his crimes. In the U.S., the Department of Justice has indicted Sinovel. In China, however, the legal system has yet to take substantive action. We believe this clearly demonstrates that the rights of foreign businesses are not being protected. The inability to rely on the rule of law is creating a risk for U.S. businesses operating in China. The administration has been incredibly supportive of our issue and so I'm requesting that, together with Congress, they examine how trade secret theft is impacting American jobs and innovation and address the issue before it further impacts economic development."
"We must get tough on those foreign companies that steal American ingenuity," said U.S. Senator Elizabeth Warren (D-Mass). "It's time to enforce our trade laws to ensure that U.S. companies compete on a level playing field. I call on China to cooperate fully in ending these unlawful practices. Decisive actions on their part will send a positive signal to the United States that China supports fair and mutually beneficial trade relations."
Background – a Two-Year Odyssey
AMSC and Sinovel began working together in 2005, shortly after Sinovel's founding. AMSC provided extensive wind turbine design and engineering services as well as power electronics and controls to Sinovel in the years that followed. By 2011, with the cooperation of AMSC, Sinovel was manufacturing thousands of wind turbines annually and had emerged as China's largest and the world's second largest wind turbine manufacturer.