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The increased tempo of commercial partnerships between American and Chinese technology companies has begun to raise eyebrows in Washington. National security circles worry that such partnerships are degrading the American military’s technological superiority, because American technologies are being transferred to Chinese partners tied to the military. Such concerns are valid.   However, from the perspective of American technology companies, these partnerships are nearly unavoidable.

China’s information and communication technology (ICT) market is massive, second only in size to the U.S. globally. Almost 95 percent of leading American companies agree that China is among their top five global priorities. However, many also agree that China’s business policy environment is deteriorating.

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