Schwab: Time for “mature” Chinese economy to protect IP rights, open markets
Schwab: Time for “mature” Chinese economy to protect IP rights, open markets
U.S. Trade Representative Susan Schwab said in a speech in Beijing Tuesday that China must meet its end of the bilateral trading bargain with United States now that it is a 'mature' trading partner.
Speaking to the American Chamber of Commerce in China, Schwab said that the U.S. government top-to-bottom review of trade relations between the two countries emphasized the need for China to make it easier for U.S. companies to access the burgeoning Chinese markets.
'U.S. manufacturers, farmers and service providers have seen U.S. exports to China grow an average of 22 percent a year since China joined the WTO in December of 2001, and U.S. consumers enjoy access to a wide array of high-quality, competitively priced products,' she said. 'Given the importance of our trade relationship with China, we have done a considerable amount of thinking about it. As many of you know, earlier this year the USTR led an administration-wide top-to-bottom review of U.S. trade policy towards China. It was the first such comprehensive review undertaken since China joined the WTO in 2001.
'The report observes that the deadline for China to implement most of its WTO accession commitments has now passed, so we now enter a new phase in the trade relationship — one in which China has become, should behave, and will be treated as a 'mature' and responsible member of the global trading system. It concludes that the U.S. has unquestionably derived benefits from having China in the rules-based trading system and from the enormous growth in bilateral trade.
'However, the report also stresses that the U.S-China trade relationship today still lacks equity, durability and balance in the opportunities it provides. This disparity is due in part to China's failure to honor certain commitments, including its failure to adequately enforce intellectual property rights, its efforts to protect and support certain domestic industries, and its delay in fulfilling certain market opening obligations. Left unaddressed, these problems pose a real danger to the health of the relationship.'
Schwab said that a recent Joint Commission on Commerce and Trade meeting between the United States and China showed that China can be receptive to change, including the country's decision to reopen its market to U.S. beef. She added that China has also agreed to:
* Eliminate duplicative testing and certification requirements for imported medical devices.
* Improve market access for telecommunications service providers.
* Publish all laws, regulations and other measures affecting trade, foreign exchange and protection of intellectual property in a single official journal.
'China has also announced that computer manufacturers in China would be required to install legal operating system software on all computers before they leave the factory, and committed to close optical disc plants that produce pirated CDs and DVDs,' she said. 'These are important steps on the road to addressing a very tough IPR situation, and every step that brings tangible results counts. These and other initiatives show that as major trading partners in a mature relationship, the U.S. and China can work together to resolve concerns and improve commercial ties.'
Schwab also said that China must be an active participant in renewed Doha Round talks, and must assure other nations that the Chinese markets will be as open as accessible for foreign companies as the foreign markets are to Chinese goods.