Increased US Pressure on China

I read on the online version of The Wall Street Journal that the United States is demanding that China put an end to the piracy of American intellectual property rights. In fact, the U.S. administration is considering filing against China in the WTO over the piracy issue. And last, President Bush stated that he will discuss trade reforms and other related issues with the president of China at their April meeting in Washington, D.C.

As some of my classmates know, the piracy issue in China, as it relates to U.S. intellectual property, troubles me a great deal. It was satisfying to read about the possible WTO filing by the U.S. administration because I believe that it is one of the duties of the U.S. government to protect the intellectual property rights of its citizens.

I am both optimistic and anxious about China’s response to America’s demands. First, I hope that China sees that recognizing IP rights will help their nascent market economy in the long run. For example, if a Chinese company invents a widget that is revolutionary to an industry, the Chinese company will want to reap the rewards of its development. Now what happens when a foreign company steals their idea and produces the exact widget under a different name? If China is respecting IP rights, then the Chinese company will be in a better position to argue its case in front of the WTO. Last, I am afraid that China might ignore the demands of the United States and this might lead to a disruption of the trading relationship between to the two countries. This type of posturing hurts both nations because they are dependent on each other.

I eagerly await the outcome of the April meeting between the two presidents.