United States Patent and Trademark Office (U.S. Patent and Trademark Office) director Kathi Vidal stated on Tuesday (April 16) that intellectual property rights (IPR) issues continue to be a major concern for American companies operating in China. These companies are facing significant challenges from Chinese intellectual property infringements.
Vidal is currently visiting Beijing. Speaking at an event attended by American business and legal professionals, she emphasized, “Whether it’s insufficient deterrence against infringement, challenges to drug-related patents, or theft of trade secrets, intellectual property protection and enforcement remain a key issue in U.S.-China bilateral relations.”
She pointed out that this issue damages the interests of American companies and workers, and it is not only a concern for U.S. companies but also for businesses from other countries operating in China.
According to Vidal, recent policy changes in China, including reduced transparency across the board, are “unsettling.”
In a recent blog post discussing this issue, Vidal highlighted that American companies operating in China often consider the lack of intellectual property protection and enforcement as their top concern. The U.S. Trade Representative’s Office has placed China (the Communist Party) on a “priority watch” list for over a decade.
“We continue to collaborate with our Chinese counterparts to impose harsher penalties for infringement,” Vidal said. “However, what we’re hearing today is that despite the imposition of stricter penalties, concrete actions to enforce these measures are yet to be seen.”
According to reports from Chinese state media, Vidal met with Chinese State Council Vice Premier Ding Xuxiang on Monday, with both expressing willingness to enhance dialogue on intellectual property issues.
The issue of Chinese intellectual property theft has always been a focal point for American enterprises. U.S. Secretary of Commerce Gina Raimondo told CNBC’s “Mad Money” program in December last year that during her talks with a Chinese delegation in November, she made it clear that empty promises are futile and practical actions are needed to ease tensions between the two sides.
“Stop stealing our intellectual property, provide a fair rather than arbitrary and capricious regulatory environment, and refrain from targeting American companies,” Raimondo emphasized.
She added that American companies have informed her that doing business in China is becoming increasingly challenging.
U.S. Trade Representative Tai will participate in a congressional hearing on Tuesday. According to Tai’s prepared remarks for the hearing, she will emphasize that the U.S. is “seriously considering” trade defense tools, including reviewing the tariffs imposed on Chinese imports during the Trump era, to address the threats posed by China’s trade and economic policies.
Tai stated that China’s policies are causing reliance and vulnerability in several American industries, harming American workers and businesses, and posing real risks to our supply chains.
“That’s why we are seriously considering how our existing tools can address this issue, including conducting a four-year review of the Section 301 tariffs on China,” she said.