I’m stuck on a Management question and need an explanation.
China prides in its homegrown technology for its world’s fastest bullet trains; however, foreign companies, such as GE, Siemens, and Hitachi, believe that China uses their technology through reverse engineering and cyber-scouting.1
Hitachi Ltd. of Japan, fearful of Chinese engineers stealing its technology by reverse engineering, sold its rail signaling components to Beijing-based Hollysys Automation Technologies, using its “black box” protection system that conceals inner workings, making it harder to understand and copy (Areddy & Shirouzu, 2011).
Hitachi is mystified about how the Chinese integrated its components into their signaling system.
On July 23, 2011, two Chinese bullet trains rammed into each other due to the signal failure. China failed to give an explanation of the cause.
Hitachi refused to comment on any connection. China’s bullet trains were put out of service.
Did Hitachi’s black box protection system cause the failure of the Chinese designed and manufactured signal system? If it did, is it the way to protect intellectual property? At the loss of human life? Why and why not? Who is the real evil here? What are the ethical questions involved?
If instead of Hitachi, it were GE and you were the CEO, would you allow the protection of the company’s intellectual property this way?
Is it ethical for business to protect its property like this?
1000 words atleast , APA seventh edition citation