Chong Quan Deputy China International Trade Representative
(April 12, 2012)



Ambassador Gary Locke, Vice Minister Yan Xiaohong of the National Copyright Administration of China (NCAC), Commissioner Tian Lipu of the State Intellectual Property Office (SIPO), Ladies and Gentlemen,

Good morning!
I am glad to be here at the US Ambassador’s Roundtable on Intellectual Property Protection, and to discuss issues concerning innovation and IPR protection with you.

At present, the world economy as a whole is rebounding, but due to the persisting profound impact of the international financial crisis, it will keep transforming and adjusting for a long spell to come and needs time to totally recover. Against such background, China and the US have the responsibility to continue to implement free trade policy, keep the steady development of bilateral trade and economic relations, maintain the stability of multilateral trading system, and restrain trade protectionism. China-US trade reached US$446.7 billion in 2011, up by 16%, hitting a record high. US exports to China exceeded the threshold of US$100 billion, reaching US$122.2 billion. China is the fastest growing market for US exports. The steady and healthy development of China-US trade has played its due role in reinforcing confidence of the world and boosting world economic recovery.

The still rampant financial crisis has brought uncertainties to world economy, but has also expedited the progress of global factors reorganization and industrial adjustment. It has made all countries more keenly aware of the significance of increasing innovation capacity and promoting scientific advancement. For China, encouraging innovation is the interior requirement for the transformation and upgrading of economic structure, and is necessary for future economic and social development. IPR protection, as an effective measure to stimulate innovation, deserves our constant attention and efforts. Therefore, the Chinese government has set the goal of constructing an innovative nation, and made IPR protection as a national strategy. The 12th Five-Year Program promulgated in 2011 points out that scientific advancement and innovation should be an important support to accelerating the transformation of economic development mode. The Program puts forward the requirement of “implementing IPR strategy, improving IPR legal system, reinforcing the creation, utilization, protection and management of IPR, and intensifying law enforcement on IPR”.

Since the reform and opening up 30 years ago, especially during the decade since China’s accession to the WTO, China has made huge progress in IPR legislation, administrative enforcement and judicial protection and public awareness. From October 2010 to June 2011, China's State Council launched a special campaign against IPR infringement and manufacturing and sales of shoddy and counterfeit products. Administrative enforcement departments at all levels investigated into 156,000 cases, involving 3.43 billion yuan, destroyed 9,135 illegal sites and overhauled 329 major regions and markets. The public security departments captured 29,000 suspects and cracked 16,000 cases, involving 13.11 billion yuan. Procuratorial organs ratified the arrest of 5,336 suspects in 2,895 cases, and started 2,176 suits, with the number of cases up by 77%. The courts accepted and heard 2,492 cases, and decided on 1,985 cases. Through the special campaign, some long standing problems of infringement and counterfeiting have been rectified, and market order and business environment have been obviously improved.

In order to reinforce the results of cracking down on infringement and counterfeiting, in November 2011, the State Council set up a long-term mechanism of IPR protection, and the working group of cracking down upon IPR infringement and manufacture and sales of counterfeiting and shoddy commodities. The working group, which has 29 member departments, is headed by Vice Premier Wang Qishan, with Commerce Minister Chen Deming, Vice Secretary-general Bi Jingquan of the State Council and Commissioner Tian Lipu of SIPO as vice group leaders. The office of the working group is in the Ministry of Commerce, and Vice Minister of Commerce Jiang Zengwei is the office director. Under the leadership of the working group, the office took the initiative to study and formulate relevant policy measures, coordinate and supervise the member departments and the sub-central governments in implementing the decisions of the working group, supervise the handling of major cases of IPR infringements and manufacture and sales of counterfeiting and shoddy commodities, and organize relevant publicity and education activities. As the agency responsible for the daily work of the working group, the Ministry of Commerce welcomes constructive advice and suggestions from all of you.

Ladies and Gentlemen,

In this information era, the Internet technology develops fast and Network economy has become a new growth point of world economy. Statistics show that online shopping by Chinese netizens reached 784.93 billion yuan in 2011, up by 66% compared with that of 2010, much higher than the actual growth of 11.6% in total retail sales of consumer goods. Propagation of Internet speeded up information integration and dissemination, cut down transaction cost, but it also made IPR protection a problem. While promoting the development of Internet industry and realizing the convenience of information transmission, how to balance the rights and obligations of all parties is an issue faced by all nations, which needs to be examined and be solved broad-mindedly, and with a more comprehensive and balanced thinking.

For a long time, Internet IPR protection has drawn concerns from all walks of life in China. In response to the new problems and new features of IPR in the Internet field, the Chinese government is perfecting relevant laws and regulations, also regards Network IPR protection as an important part in law enforcement. In the special campaign last year, all departments have strengthened supervision over online shopping, gave a heavy blow to selling IPR infringing and fake products on the Internet, and further improved IPR protection environment for the Internet.

While improving legislation and law enforcement, we also encourage Internet enterprises and foreign and domestic right holders to explore mutual beneficial cooperation modes. At the China-US IPR working group conferences in these years, we actively promoted communication and exchanges between Chinese industries and US governmental departments and industries. For instance, Baidu Company has been wiped off from the “notorious markets” list after communicating directly with US trade representative office.

Ladies and Gentlemen,

The IPR issue has always been an important topic in China-US trade and economic relations. The IPR exchange between China and the US started in 1980s. Since 2004, through the means such as conferences of IPR working group China-US Joint Commission on Commerce and Trade, China and the US have made IPR exchanges deeper and promoted bilateral trade and economic development. Strengthening dialogue and cooperation is the basic consensus for China and the US to address IPR issue. To realize win-win results on the basis of equality, respect, reasonableness and openness should be the firm cooperation concept and mode for China and the US in IPR protection field.

In this era of economic globalization, economic inter-dependence and integration of countries and regions is strengthened, so IPR issue has overstepped the boundary of one country or region and become global; the emergence and development of new technologies such as the Internet also has brought huge impact and challenges for IPR protection of the international community including developed and developing countries.

US, the largest developed country in the world, and China, the largest developing country in the world, have common interests in encouraging innovation and IPR protection. With the cooperation concept of equality, respect, reasonableness and openness and cooperation mode of mutual benefit and win-win results, we would like to work together with the US to explore new cooperation methods and fields to establish better platforms, create better environment, and make contribution to the harmony and balance of international IPR system and the healthy and prosperous development of bilateral trade and economic relations.

Looking forward to a successful conference.

Thank you!