China Agrees To Significant Intellectual Property Rights Enforcement Initiatives, Market Opening, And Revisions To Its Indigenous Innovation Policies That Will Help Boost U.S. Exports At The 21st Session Of The U.S.-China Joint Commission On Commerce And Trade

WASHINGTON, D.C. — December 15, 2010 — Today marked the end of the 21st session of the U.S.-China
Joint Commission on Commerce and Trade (JCCT) in Washington, D.C. The JCCT was co-chaired by U.S.
Secretary of Commerce Gary Locke and U.S. Trade Representative Ron Kirk along with Chinese Vice
Premier Wang Qishan. U.S. Secretary of Agriculture Tom Vilsack also participated in the
discussions. Today’s outcomes will make U.S. businesses more competitive in China, help boost U.S.
exports and jobs, and increase market access for U.S. businesses, creators, innovators,
entrepreneurs, farmers and ranchers seeking to do business in China. 

Specifically, China agreed to significant initiatives in several areas, including
intellectual property rights enforcement, open and neutral technology standards, clean energy, and
government procurement. Importantly, on indigenous innovation, China agreed not to discriminate in
government procurement based on the origin of intellectual property or to use discriminatory
criteria to select industrial equipment. China also agreed to resume talks on beef market

“The 21st JCCT was both productive and effective,” said Secretary Locke. “We were able to
make progress on significant issues in a number of areas, and on other issues we have established
channels that will allow us to continue our robust engagement and pursue timely

“China agreed to a series of intellectual property rights commitments that will protect
American jobs. The commitments build on China’s recently announced Special Campaign against
counterfeiting and piracy,” Ambassador Kirk said. “These commitments will have systemic
consequences for the protection of U.S. innovation and creativity in China. We expect to see
concrete and measurable results, including increased purchase and use of legal software, steps to
eradicate the piracy of electronic journals, more effective rules for addressing Internet piracy,
and a crack down on landlords who rent space to counterfeiters in China.”

“China’s announcement that it will not discriminate in government procurement decisions based
on where the intellectual property component of the products was developed is a valuable outcome
for America’s innovators and entrepreneurs who can continue to create American jobs and selling to
the Chinese Government without concern that they will be unfairly blocked from the market. We were
also able to obtain China’s commitment to accelerate its accession to the WTO’s Government
Procurement Agreement,” said Ambassador Kirk. “China agreed to work with provincial and local
governments and to submit a robust revised offer of coverage in 2011.”  

“China also committed to revise a major equipment catalogue, which covers heavy machinery and
other industrial equipment, and not to use it to discriminate against foreign suppliers or provide
prohibited subsidies,” added Secretary Locke. “I am pleased as well with China’s pledge to adhere
to openness, non-discrimination, and transparency in its smart grid market, and to cooperate with
the United States on smart grid standards, creating more opportunities in a market that is
estimated to be worth $600 billion. Similarly, China’s commitment on technology neutrality for 3G
and future technologies will ensure market access for American businesses to one of the world’s
largest telecommunications markets.”

Agriculture Secretary Vilsack said, “I am pleased with the progress made today towards
resolving our differences on beef access. Technical talks will resume as soon as possible with the
goal of re-opening China’s market in early 2011. This is a vital outcome for our farmers and
ranchers, underscoring the importance of the JCCT in providing a forum for our stakeholders.”

The United States and China also signed seven new agreements covering agricultural
collaboration, soybean exports, statistics, and promotion of investment in the United States. In
addition, the U.S. Trade Development Agency signed the Operating Framework Agreement that marks 10
years of its China program as well as grants for State Grid Smart Grid Standards Development and an
Integrated Real Time Water Monitoring System Feasibility Study and Pilot Project. 

Established in 1983, the JCCT is the main forum for addressing bilateral trade issues and
promoting commercial opportunities between the United States and China.

Posted on December 21, 2010

Source: U.S. Department of Commerce