China Pressed to Forcefully Attack Intellectual Property Theft

Japanese US Embassy Press Release, Jan 19, 2005

Chinese leaders must "forcefully confront" the problem of widespread piracy and violations of intellectual property

Chinese leaders must "forcefully confront" the problem of widespread piracy and violations of intellectual property rights that put increasing strain on U.S.-China trade relations, Commerce Secretary Donald Evans says.

"Because of our persistence, the Chinese government has taken steps to strengthen IPR protections, but our focus remains on results," Evans said in a keynote address to the Ambassador's Forum on International Property Rights Protection in Beijing January 13.  "Process is not progress.  Results are progress," he said.

Evans spoke on the final day of his fourth and final visit to China as commerce secretary.  He announced his resignation shortly after the U.S. presidential election in November 2004.  President Bush has nominated Carlos Gutierrez, chief executive officer of the Kellogg Company, as his replacement.

Returning to a theme that he has stressed throughout his term in office, Evans urged China to move quickly toward implementation of economic reforms to strengthen rule of law, create greater transparency and predictability in business practices, and open markets to U.S. products, services, and investments.

"Progress toward a level playing field has been incomplete, uneven, and unacceptable," he said.

Because of theft and piracy, Evans said, American companies are losing billions of dollars of sales and the reputation of American brands has been damaged.  Particularly troubling, he added, is the fact that companies owned by local governments have been implicated in violations.

"How can the rule of law take hold when those charged with enforcing the laws are either complicit in or tolerate illegal acts?" he asked.  "The key innovations contributed by Chinese companies shouldn't be path-breaking achievements in the art of deception."

Evans stressed the importance of trust in the bilateral trading relationship and said the United States has dealt with China in good faith.  "We've been good partners, and we expect China's leaders to make our common economic interests an equally important priority," he said.  "We're not just here to raise criticisms; we're here to help China grow and prosper."

The commerce secretary pointed out that IPR violations ultimately harm the Chinese economy as well, discouraging investment and damaging Chinese companies that develop sophisticated products or attempt to build brand names.  He cited Hong Kong as an example of how Asian governments can successfully stop piracy when they have the will to do so.

"Here's the bottom line," Evans said.  "Rhetoric without results is worthless.  We need deeds, not words, from the Chinese government.  The lack of tangible and real results creates skepticism at home about China's commitment."

Evans expressed certainty that China can win the battle against intellectual property theft.

"I'm hopeful for the future of our relationship," he concluded, reiterating the strong U.S. commitment to building a bilateral partnership with China.  "Its foundation is healthy and strong.  I draw my optimism from the many amazing people that I have met in China."