The United States International Trade Commission released a report on China's intellectual property rights infringement against U.S. firms. To no surprise, the report describes how China's refuses, isn't capable to either enforce U.S. intellectual property rights and in some cases, outright steals them.

Infringement of intellectual property rights (IPR) in China reduces market opportunities and undermines the profitability of U.S. firms when sales of their products and technologies are undercut by competition from illegal, lower-cost imitations.

To make matters worse, the Chinese courts are a hydra of rules and for small companies it is simply too expensive to try to do anything about the latest rip off.

China also enacted indigenous intellectual property policies, which is a glorified way of requiring advanced R&D be done locally in order to be recognized. Imagine (the good news for U.S. workers), if the United States required all advanced R&D to be done locally and by Americans to be considered valid. That's what China is doing.

“Indigenous innovation” policies, which promote the development, commercialization, and purchase of Chinese products and technologies, may also be disadvantaging U.S. and other foreign firms and creating new barriers to foreign direct investment (FDI) and exports to China.