“It’s really about how American companies go forward in China, how their IP can be protected and if there are problems, how they will be compensated for,” he told analysts on a conference call.

If the Chinese government does seriously address IP, it should help facilitate additional western investment in China and also technology transfer. If not, it “changes the landscape greatly” between how investors in the US and Europe look at, respect and want to participate in the Chinese market, McGahn adds.

AMSC