China to embrace IPR enforcement initiatives

China on Wednesday agreed to take significant steps with regard to enforcement of intellectual property rights, opening its markets and revising its indigenous innovation policy - all of which the United States said will boost its exports to Asia's largest economy.

"We were able to make progress on significant issues in a number of areas and on other issues, we have established channels that will allow us to continue our robust engagement and pursue timely solutions," Commerce Secretary Gary Locke said at the end of the 21st session of the US-China Joint Commission on Commerce and Trade (JCCT), which concluded in Washington on Wednesday.

"China agreed to a series of intellectual property rights (IPR) commitments that will protect American jobs. The commitments build on China's recently announced special campaign against counterfeiting and piracy," said US Trade Representative Ron Kirk.

Specifically, China agreed to adopt significant initiatives in several areas, including intellectual property rights enforcement, open and neutral technology standards, clean energy and government procurement, an official US statement said.

Importantly, on the issue of 'indigenous innovation', China has agreed not to discriminate against technologies based on the origin of the intellectual property in government procurement contracts, or for selection of industrial equipment suppliers.

China has also agreed to resume talks on market access for American beef, it said. "These commitments will have systemic consequences for the protection of US innovation and creativity in China.

We expect to see concrete and measurable results, including increased purchase and use of legal software, steps to eradicate the piracy of electronic journals, more effective rules for addressing Internet piracy and a crack down on landlords who rent space to counterfeiters in China," Kirk noted.

China's announcement that it will not favour home-grown companies for government procurement orders is also a valuable outcome for America's innovators and entrepreneurs, who can continue to create American jobs and selling to the Chinese government without concern that they will be unfairly kept out of the market, he said.

"We were also able to obtain China's commitment to accelerate its accession to the WTO's Government Procurement Agreement. China agreed to work with provincial and local governments and to submit a robust revised offer of coverage in 2011," Kirk said.

China has also committed to revise a major equipment catalogue, which covers heavy machinery and other industrial equipment, and not to use it to discriminate against foreign suppliers or provide prohibited subsidies, said Locke.

"I am pleased as well with China's pledge to adhere to openness, non-discrimination and transparency in its smart grid market and to cooperate with the United States on smart grid standards, creating more opportunities in a market that is estimated to be worth $600 billion.

"Similarly, China's commitment on technology neutrality for 3G and future technologies will ensure market access for American businesses to one of the world's largest telecommunications markets," Locke said.

Pleased with the progress made towards resolving differences between the US and China on beef access, Agriculture Secretary Tom Vilsack said technical talks will resume as soon as possible with the goal of re-opening China's market in early 2011.

"This is a vital outcome for our farmers and ranchers, underscoring the importance of the JCCT in providing a forum for our stakeholders," he said.

The United States and China also signed seven new agreements for collaboration in the area of agriculture, soyabean exports, statistics and promotion of investment in the United States.

In addition, the US Trade Development Agency signed an Operating Framework Agreement, as well as grants for State Grid Smart Grid Standards Development and an Integrated Real Time Water Monitoring System Feasibility Study and Pilot Project.

Established in 1983, the JCCT is the main forum between the United States and China for addressing bilateral trade issues and promoting commercial opportunities.