U.S. Chamber Supports International Trade Commission's Analysis of China's IP and Indigenous Innovation Policies

Monday, June 14, 2010 - 8:00pm

Seeks to Measure Impact on American Business, Workers, and Competitiveness

WASHINGTON, D.C.-Citing China's growing web of indigenous innovation policies and lax intellectual property (IP) rights protection and enforcement, the U.S. Chamber of Commerce will call on the International Trade Commission to aggressively examine the impact of China's IP and indigenous innovation policies on American business, workers and broader national competitiveness.

"The United States and China are important economic partners, and there is a mutual responsibility to work together constructively to combat protectionism and eliminate discriminatory practices that create unfair market conditions," Jeremie Waterman, senior director for Greater China at the U.S. Chamber, will tell the U.S. International Trade Commission (ITC) in testimony tomorrow. Waterman's testimony will be delivered as the House Ways and Means Committee also hosts a hearing on China's IP and industrial innovation policies.

Waterman will highlight IP rights in particular as a growing concern for U.S.-China relations, calling it the "lifeblood of the U.S. economy." He will point to the Chamber's Global Intellectual Property Center's recently released report, "The Impact of Innovation and the Role of Intellectual Property Rights on U.S. Productivity, Competitiveness, Jobs, Wages and Exports," in which government data demonstrated that IP-intensive industries are a key to creating jobs and driving exports.

According to Waterman, China is actively working to create a legal environment that discriminates against American and other foreign technologies. "The serious problems caused by China's innovation polices are compounded by the fact that these policies are being advanced in an overall environment of weak protection and enforcement of IP rights," Waterman will say.

In addition to long-standing counterfeiting and piracy challenges, Waterman will underscore industry concerns regarding China's "indigenous innovation product catalogue," a list of products invented and produced in China that would receive preferential treatment in government procurement in China. Waterman will urge China to refrain from using such product lists to steer procurement and other purchasing decisions.

The U.S. Chamber of Commerce is the world's largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.

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