Steve Saleen claims that China has stolen 40 years’ worth of intellectual property from him in launching the Saleen brand in China.
In 2016, Saleen entered a joint venture with the government of Rugao, a city in Jiangsu province with a population of roughly 1.4 million. The plan was for Saleen to use his experience, design, engineering and related technologies worth $800 million in the joint venture while maintaining a majority stake in the company with his American partners. Meanwhile, Rugao would bring $500 million in capital and $600 million in subsidized loans over three years to fund manufacturing sites and operations in exchange for a minority stake.
Writing in The Wall Street Journal, Saleen claims “the deal was a sham.” According to the racing legend, the joint venture applied for 510 Chinese patents based on his designs, technologies, trade secrets and engineering developments. He adds that most of these patent filings didn’t list him as an inventor. The company, known as Jiangsu Saleen Automotive Technologies (JSAT), unveiled a range of models 12 months ago.
Read Also: Saleen Unveils New Crossover And Electric City Car In China
Saleen asserts that the government of Rugao is attempting to take over the joint venture now that it has his intellectual property and patents. He claims that the director of corporate affairs for JSAT, Grace Yin Xu, has been missing since June 22 when she entered a government building shortly after refusing to lie to local law enforcement who wanted her to state Saleen’s business partner had provided false information and embezzled money. In addition, the company’s vice president of manufacturing, Frank Sterzer, was allegedly detained for six hours by the authorities.
In his op-ed, Saleen states that “China can no longer go unchecked”, citing a 2019 survey that 20 per cent of North American corporations say the People’s Republic has stolen their intellectual property in the past year. He adds that the U.S.-China trade deal must include protections for American companies and consumers.
“Such measures may not be enough to protect my 40 years of work and the brand I have built. But it isn’t too late for other American entrepreneurs whose livelihoods are at stake,” Saleen writes. “Congress, and the Trump administration should send a clear message to China: If you want to be in the race, play by the rules.”
