US Push For WTO Investigation Of Chinese Piracy

China has today become the subject of a formal investigation by the World Trade Organisation on behalf of the US, following a number of high profile complaints of piracy and copyright infringement, particularly in manufacturing sectors.

The US authorities have officially alleged that China is not doing enough to tackle the problems of piracy and counterfeiting of branded goods, many of which are being imported to the detriment of the US market of billions of dollars every year.

The US is pushing for Chinese authorities to seriously consider the issues surrounding its lax enforcement of copyright law and international treaty provisions, which leave it a haven for counterfeiting and cheap imports to the US.
Particularly in light of a currency which many have said is artificially weak against the dollar to encourage exports stateside, the Chinese authorities could find themselves in significant trouble over the issue of copyright infringement.

Pending the outcome of the World Trade Organisation’s investigations, the US may be able to levy trade sanctions against China until it develops sufficient legal infrastructure to enforce copyright infringement, which could cost the Chinese economy billions of dollars in lost trade every year.

Sources inside Washington have suggested that whilst all amicable steps were taken initially to resolve the dispute, no agreement had been reached from Beijing on how it would tackle the issue, which has been a driving force behind prompting the launch of today’s investigation.

In response, Beijing has warned that the investigation will damage its relations with the US, and that it was already doing enough to combat the problem of copyright infringement within its economy for the benefit of its trade relations with the US and further afield.

Meanwhile, the US is itself subject of a World Trade Organisation investigation from the EU, as a result of rule-breaking import “dumping” policies.

Story link: US Push For WTO Investigation Of Chinese Piracy