
China hits back as US turns up heat on piracy
Wednesday, April 11, 2007
China said Tuesday it is "strongly dissatisfied" with the US decision to complain to the World Trade Organization about Beijing's protection of intellectual property rights, as trade tensions between the two countries stepped up a notch.
The United States filed two new complaints against China at the WTO Tuesday over copyright policy and re- strictions on the sale of American movies, music and books, US trade officials said.
The move at the WTO comes a day after US Trade Representative Susan Schwab said American companies were losing billions of dollars annually from piracy levels in China that "remain unacceptably high."
In a statement posted on China's Ministry of Commerce Web site, Wang Xinpei, a ministry spokesman, said the Chinese government greatly regrets the United States' planned move, which "goes against the consensus between leaders of both countries to strongly develop bilateral trade relations and to appropriately resolve trade problems."
The plan "seriously hurts the cooperative relationship developed between both countries in this area and will exert a negative effect on bilateral trade," Wang said.
Separately, Xinhua News Agency cited State Intellectual Property Office Commissioner Tian Lipu as saying the US decision is "not a sensible move."
Trade frictions between the two countries have been growing, with the latest US claims coming on the heels of Washington last month imposing preliminary tariffs on imports of Chinese sheet paper ranging from 10.9 percent to 20.4 percent, and a WTO case filed by the United States in February in which it alleged Beijing had given unfair subsidies to a range of Chinese industries.
The trade disputes will also cast a shadow over a high-level visit by Chinese Vice Premier Wu Yi to the United States in May as part of a strategic economic dialogue between the two countries. A person familiar with the situation said last week that China is drafting plans to buy US$12.5 billion (HK$97.5 billion) of US goods ahead of that visit.
"The United States has filed a WTO complaint right when China is forging ahead with its IPR protection efforts," Tian was quoted as saying in the Xinhua report.
"We will move quickly to formulate and implement a national strategy for intellectual property rights to strengthen protection of them," he said.
As part of its efforts to curb piracy, China last year started requiring computer manufacturers to ship their products loaded with legitimate copies of operating-system software.
Schwab Monday acknowledged China's leaders have made progress in improving property rights protection for movies, music, books and other goods, but said the United States and China have not been able to agree on legal changes the United States believes are needed for China to comply with its WTO commitments.
But Wang of the Chinese commerce ministry said: "The Chinese government has always taken a resolute attitude to protecting intellectual property rights, with results that are evident to all."
Wang added that China has not yet received the WTO's request for consultation over the US complaints, and will "seriously study" and "vigorously deal" with the request once the United States formally raises it.
The trade actions come as China's huge trade surpluses are exacerbating some US politicians' impatience with Treasury Secretary Henry Paulson's approach of stressing engagement and dialogue with China to deal with bilateral trade problems