On a flight to Beijing, my seatmate turned out to be a corporate counsel for a major U.S. manufacturer. He was leading the negotiations for the company's entrance into a significant sector of the Chinese economy. Surprisingly, he acknowledged that his company's intellectual property would eventually be lost as a result of the deal, through technology transfer, reverse engineering, or flat-out theft. He knew that the company's crown jewels were going to be taken no matter what protections he negotiated. Still, he worked diligently to close the deal. He had the assistance of the U.S. government in pushing the transaction and the support of the Chinese government in backing it. The deal would be a short-term gain but a long-term risk to his company and the U.S.