Sino-US Dispute Over Intellectual Property Rights Gains Momentum

Strategic Insights -

The dispute between China and the United States over intellectual property rights (IPR) has been escalating in recent years, with both countries viewing IPR protection as crucial to their national economic interests. The US economy heavily relies on technology export trade centered on IPR, while China has become the fourth-largest export market for the United States. As the value of US exports to China grew at a rate five times that to other countries in the past five years, it is natural for the United States to emphasize IPR protection. China, on the other hand, is shifting from an "imitation" phase to one of "learning" and "innovation," making it imperative to respect others' IPR and possess its own. The Sino-US dispute over IPR reflects different attitudes towards related international conventions, with China adhering to the principle of "international treaty comes first" and the US Congress prioritizing domestic law.

Key Takeaways:

  • The Sino-US dispute over IPR has been gaining momentum in recent years, with both countries viewing IPR protection as crucial to their national economic interests.
  • The US economy heavily relies on technology export trade centered on IPR, with China being the fourth-largest export market.
  • China's economic development has shifted from an "imitation" phase to one of "learning" and "innovation," making it imperative to respect others' IPR and possess its own.
  • The dispute reflects different attitudes towards related international conventions, with China adhering to the principle of "international treaty comes first" and the US Congress prioritizing domestic law.
  • China is building up its own IPR regulatory system on the basis of respect for international treaties, while the United States tends to force changes in international treaties in its favor.
  • IPR violations are becoming more complicated in the Chinese market, with the protection of IPR in China faced with structural obstacles, posing a long-term threat to China-US efforts to solve the problem.
  • The IPR issue between China and the United States is essentially the clash of different standards followed by the two countries at different stages of development.
  • China's efforts to beef up IPR protection according to international standards are hampered by its nascent development level and huge regional gap.
  • The difference between the statutory mechanisms the two countries maintain is also one of the causes of bilateral disputes on IPR protection.

Statistics:

  • In the past five years, the value of US exports to China grew at a rate five times that to other countries.
  • China has become the fourth-largest export market for the United States.
  • The use of pirated software in China is estimated to be around 90%, although this figure has no hard evidence to support it.

Sources:

  • "Beijing, April 21 Asia Pulse" (no date mentioned)
  • (XIC) 21-04 1608 (no date mentioned)