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Failing on Patent Protection, China is criticized by its global business partners

September 6, 2003
Failing on Patent Protection, China is criticized by its global business partners
According to Reuters in Geneva, at an annual meeting held by WTO’s General Council, China’s business partners commented and assessed China’s performance concerning patent protection and discussed the existing that still need to be solved. At the meeting, China’s business partners scored China’s performance since its accession to WTO. Although they admired China for implementing a progressive economic policy, which is in compliance with WTO principles, they thought China’s performance on IP protection was less then satisfactory.

One of world’s most rapidly growing economies, China entered into the WTO at the end of 2001. According its agreement signed with the WTO, it was determined China would have an 8-year transitional period before it completely complies with WTO’s rules. During the meeting, a trade official quoted an American representative as saying, “We think things have been going smoothly, as we expected.” He indicated that China is making great progress in terms of decreasing import quotas and lowering the limitations of capital investment for foreign companies to enter China’s insurance market. On the other hand, China still needs to improve its performance on IP protection and patent protection rules.

The American official said that nearly 90% of China’s computer software, musical work and movies are pirated. The price of a DVD of newly released Hollywood movie is sold for less than 1 USD in China. The European Union and Japan have raised questions to China with respect to its IP protection and pointed out that as long as China continues to restrict foreign banks and foreign telecommunication and construction companies to enter China’s market, there are still some problems that need to be resolved.

　

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