The US is in talks with China, because China is stealing Intellectual Properties from the US.
Though China now has intellectual property laws, they have widely been criticized as being insufficient, flawed, under-enforced, and bias towards
By far the greatest concern that foreign companies and their lawyers have over Chinese patent laws are the wide loopholes, which some see being
deliberate, that exist. Some of which can render foreign products ‘Chinese’ on a no questions asked basis, grant and the infringing companies the
full backing of the Chinese courts.
The reasons for much of the concern is that, under current domestic law, Chinese companies are not required to prove that their product or deign is
new or innovative when they come to patent it. This makes it far easier and cheaper for a Chinese company to register a patent than their foreign
counterparts, but also creates a loophole that allows Chinese companies to simply present a few documents and 're-register' foreign products in
China, enabling them to claim domestic patent ownership over foreign products
"China seems to have taken the term free trade to an extreme
," said DeFazio. "Not only are successful small U.S. businesses like Videx being
ripped off by Chinese companies, but corporate giants like General Motors have seen their products counterfeited, with no reprimand from the Chinese
government or world governing bodies.
First, I would like to present some of the basic facts of the United States-China trade relationship. The emphasis of supporters of unconditional
renewal of MFN status for China is not unexpectedly focused on our exports to China, it is important also to focus on China's exports to the United
States. While overall United States exports to China have tripled in the last 10 years, United States imports from China have grown by 11 times,
resulting in a trade deficit with China that has grown from $10 million in 1985 to $35 billion in 1995. $35 billion.
Another alarming feature of this trade pattern is the 4-to-1 ratio of what we buy from China to what they buy from us. The United States is China's
largest export market, with over a third of their exports coming into our market with preferential trade treatment. Our products, by and large, are
not allowed into the Chinese market. These barriers to market access contribute to the trade deficit.
And lest we think that the nearly $12 billion of exports that we send to China is a big number, consider this China, with 1.28 billion people, buys
just under $12 billion.
Taiwan, with 23 million people, buys nearly $20 billion from the United States. So the access to the Chinese markets is a major obstacle in our trade