FOR IMMEDIATE RELEASE
July 11, 2005
Contact: John Frisbie, Erin Ennis 202-429-0340

US-China Business Council Welcomes Results of Trade Talks

(Washington, DC) The US-China Business Council (USCBC) welcomes the progress made at this year's Joint Commission on Commerce and Trade (JCCT) meeting. "American companies will benefit from the agreements Secretary of Commerce Carlos Gutierrez, Secretary of Agriculture Mike Johanns, and US Trade Representative (USTR) Ambassador Rob Portman reached with Vice Premier Wu Yi," said USCBC President John Frisbie.

At the meetings concluded on July 11 in Beijing, China agreed to a number of measures designed to step up enforcement of intellectual property rights, including increased criminal prosecutions and the criminalization of exporting counterfeit goods. China also agreed to accede to the World Intellectual Property Organization Internet treaties by June 2006 and combat Internet piracy. "These measures provide additional tools for the stronger deterrence of counterfeiting activity, which we have pressed for," said Frisbie. "We now need to see more criminal cases. Turning around China's piracy problem is critical for American firms, as well as for Chinese companies that seek to develop intellectual property."

On results that address software company concerns, Frisbie said, "Importantly, China agreed to delay the issuance of rules on the government procurement of software and seek public comment for revisions to these rules. The rules would have effectively prevented American software companies from participating in the main legitimate market in China; we need to continue to work with China to have these rules shelved or revised to reflect international procurement practices that allow American companies to participate. To that end, China agreed to begin discussions on joining the World Trade Organization [WTO] Government Procurement Agreement, which we fully support. China also committed to ensure that government offices all use legitimate software and extended this program to include state-owned enterprises, which will result in more software sales for American companies."

Additional progress was made to resolve remaining issues regarding distribution rights and to clear the backlog of applications by American companies seeking to distribute goods in China. "Distribution rights are a core aspect of China's WTO entry obligations," Frisbie said. "We are pleased that this issue, in particular, is getting resolved to allow American companies to sell more products in China."

In the agricultural area, China finalized regulatory approval of NK 603, a biotech corn product, which completes a series of approvals for US biotech varieties, including corn, soybeans, cotton, and canola. This latest approval will help continue to expand the market for American farm exports.

Overdue regulations on direct selling businesses (door-to-door sales) will also be issued. "While progress was apparently made on two issues important to this industry, we need to see the details of the regulations to fully understand how American companies will be able to implement this sales model."

Frisbie concluded: "The results of the JCCT meeting reaffirm the importance of expanded bilateral engagement, which is the most effective way to secure gains for US companies. Not all issues were fully resolved during these meetings, and the US-China Business Council will continue to work with both governments to address remaining issues. We applaud the efforts of the US and PRC governments to improve commercial ties between the two countries and encourage both sides to use the momentum created by the JCCT to make continued progress on trade concerns."

For USTR's summary of the JCCT outcomes, see
http://www.ustr.gov/Document_Library/Fact_Sheets/2005/
The_U.S._China_Joint_Commission_on_Commerce_Trade_(JCCT)_Outcomes_on_Major_U.S._Trade_Concerns.html

Last Updated: 11-Jul-05