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| A Realistic View into the IPR Issue |
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US Secretary of Commerce Carlos Gutierrez is in Beijing for his second China visit with a focus on intellectual property rights protection. The nuclear stand-offs in the Korean Peninsula and Iran, as well as the Taiwan issue, are also the major concerns of China and the United States. The trade issue, however, is particularly imminent in recent days. The Capitol Hill, which is frustrated by the trade deficit with China, is trying to pressure on two aspects: the RMB exchange rate and the intellectual property rights. The first issue was the focus of the visit by two American senators, Charles Schumer and Lindsey Graham, a few days ago asking for higher tariffs on Chinese products while Mr. Gutierrez immediately shifted people's attention to the second. The IPR protection has become one of the most important issues between China and the US. The implication is that the Sino-US relations are entering a definitely different stage which is described by some experts as "problem solving" stage. The trade issue is underpinned by several reasons. The closer exchanges and more understanding between the two sides also lead to frictions concerning interests which have direct bearings. Conflict of interest also emerges in some sectors when China's economy is growing very fast. In addition, the trade issue has a much more direct bearing on people's livelihood and is easier to draw people's attention than ideological or strategic issues. And trade issue is relatively easier to be solved. In fact, the two sides have established a mechanism for that. The disputes over the IPR reflect the difference between the two countries on economic structure, development stage and interests. The IPR disagreement is actually a question of how the US thinks of China's development. When the developing world began to deliberate seriously on how to "transplant" the concept of the intellectual property rights at the end of last century, developed countries, led by the US, had fenced know-how which they develop but is urgently needed by many developing countries. Developing countries, in the process of industrialization, have been increasingly aware of the importance of respecting the IPR and kept learning and introducing advanced knowledge. In the meantime, they have no choice but following the "game rule" set by developed countries and facing formidable IPR enclosure. Given that, China has been making unremitting efforts on building an IPR protection system which complies the international standard on the one hand and exploring an IPR protection regime which is in accordance with China's situation and helps promote a rational international trade order on the other. It is fair to say that China has made rapid progress on the IPR protection although it took a somewhat late start on it. An objective, impartial view on the global and China's IPR protection is always based on the future perspective. Tactics of bulldozing never works and has the risk of politicizing the trade issue. That is especially alarming this year when the US Congress will have its mid-term election. History always goes with ups and downs. Frictions are unavoidable in the scale-up of the China-US trade. As the US deputy trade representative Karan K Bhatia said in Shanghai last week, " Trade frictions arise even among the closest of partners. In a mature international relationship, those frictions are dealt with on their own terms, while the broader relationship continues to flourish." (People's Daily Online March 30, 2006)
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