China’s tech plans ‘disrespect’ IP rights, says US commerce secretary
The US commerce secretary has accused China of having “disrespect” for IP at the World Economic Forum (WEF), ahead of President Donald Trump’s visit to China next month.
Speaking at the WEF in Davos, Switzerland on Wednesday, January 24, Wilbur Ross referred to China’s development of high-tech goods as a “direct threat” to US trade.
He said China’s 2025 plan aims to position the country as a world leader with a large market share in new technologies.
According to Reuters, Ross said that the threat to US trade is being “implemented by technology transfers, by disrespect for IP rights, by commercial espionage, by all kinds of very bad things”.
He added that the US is not trying to start a trade war but is rather trying to fend off Chinese protectionism in industries such as technology.
Liu He, a close advisor of China’s President Xi Jinping, was also in Davos, Reuters reported.
He said that China will be increasing its efforts to protect IP and expand imports, while relaxing restrictions for foreign companies in its financial sector.
Speaking to WIPR, John Pegram, senior principal at Fish & Richardson, explained that IP enforcement plays an important role in international trade regulation and, because of this, both the US and Europe should continue efforts to raise IP enforcement standards in Asia.
Pegram said that while significant progress has been made in these efforts, the withdrawal of the US from the proposed Trans-Pacific Partnership trade deal in January 2017 was unfortunate as, under the guidance of the US, the agreement had included provisions relating to enhanced IP protection.
These provisions have been suspended by the 11 countries proceeding with the partnership, WIPR reported.
Matthew Murphy, partner at Beijing-based MMLC, said that while China has come a long way in relation to IP protection, for citizens as well as foreign entities, “there is still a long way to go”.
On China’s alleged protectionism policy, Murphy said: “China’s IP laws look great on paper, but often when trying to access China’s system, or enforce rights in courts or via administrative authorities, issues arise which are frustrating.”
As improvements are “certainly needed”, Murphy said it’s good that the US is putting pressure on China. If China’s IP measures are improved, foreign investors will feel more comfortable investing in China, which will benefit trade.
However, Murphy believes a better approach would be to allow Chinese companies greater access to the US market in exchange for China improving its IP protection and enforcement.
US Trade Representative Robert Lighthizer is currently leading an investigation into China’s IP practice. The probe was requested by Trump.
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