United States and China Conclude Annual Bilateral Trade Meeting

The Chinese government agreed to address a number of U.S. trade concerns at the plenary session of the 17th U.S.-China Joint Commission on Commerce and Trade (JCCT) held in Washington, D.C. on April 11, 2006, according to a U.S. Department of Commerce press release dated the same day. U.S. Commerce Secretary Carlos Gutierrez said the United States and China still have work to do, but that the meeting was a positive step. The Department of Commerce reported that the Chinese government's commitments included:

• Agriculture: Reopening the Chinese market to U.S. beef, subject to finalization of a protocol by technical experts.
• Procurement: Commencing formal negotiations to join the WTO's Government Procurement Agreement.
• Standards: Ensuring that telecommunications service providers will be allowed to make their own choices as to which standard to adopt, and to issue licenses for all 3G standards in a technologically neutral manner that does not advantage one standard over others.
• Telecommunications: Adjusting its registered capital requirements for telecommunications service providers.

The Department of Commerce report also said that the Chinese government agreed to take specific actions with respect to enforcing intellectual property rights, including closing down copyright violators, requiring computer manufacturers to install legitimate software, ensuring the use of legal software in government offices and state enterprises, and ridding consumer markets of infringing goods. Chinese officials made several announcements regarding these actions prior to the JCCT meeting:

• Between January and April 2006, the General Administration of Press and Publication investigated 48 optical disc-copying enterprises, and found 14 were operating illegally. They rescinded six of their licenses and ordered eight to shut down and "make adjustments," according to a Xinhua report published on the People's Daily Web site on March 27.
• On March 30, the National Copyright Administration, Ministry of Information Industry, Ministry of Finance, and State Council jointly issued a Circular Regarding Requiring Government Agencies Purchasing Computer Office Equipment to Purchase Products With Legitimate Copies of the Operating System Software Pre-Installed that reiterated requirements set forth in previous regulations that ordered Chinese government agencies to use legitimate copies of software. All of China's provincial level governments had complied with this mandate, according to an April 13 article published on the State Council Information Office's Web site.
• On April 6, China's Ministry of Information Industry (MII), National Copyright Administration, and Ministry of Commerce jointly issued the Circular Regarding Certain Issues Relating to the Pre-Installation of Computer Operating System Software requiring all computers manufactured and sold in China to have legitimate copies of an operating system installed before they reach consumers.

According to an April 12 report from Inside U.S.-China Trade (subscription required), however, the Chinese government rejected three requests from U.S. officials on intellectual property rights enforcement:

• That it provide information to identify the facilities where pirated optical discs are being made;
• That it create a group comprising government and industry representatives from the United States and China to determine whether the government has fulfilled its commitment to ensure that government and enterprises are only using legitimate software; and
• That it show it is imposing criminal penalties for infringements of intellectual property rights.

U.S. Agriculture Secretary Mike Johanns signed a memorandum of understanding on April 11 with Li Changjiang, Minister of the General Administration of Quality Supervision, Inspection, and Quarantine, according to an April 12 U.S. Department of Agriculture press release. Under the MOU the United States and China agreed to exchange information on food regulations and standards, inspection and quarantine procedures, and other issues such as pests and disease, harmful residues, and food certification.

Established in 1983, the JCCT meets annually to develop and facilitate the bilateral commercial, trade, and investement relationship. The United States uses the JCCT as a forum to identify and resolve commercial and trade problems and to expand trade opportunities. The previous JCCT meeting was held in Beijing on July 11, 2005. PRC Vice Premier Wu Yi and U.S. Trade Representative Rob Portman and Commerce Secretary Carlos Gutierrez co-chaired the 2006 meeting in Washington.