USITO Weekly 4/30/2009: China Signs Big Buying Contracts with U.S.

China and U.S. Firms Sign Huge Contracts

According to latest Xinhua news report, Chinese and U.S. firms signed 32 trade and investment contracts on April 27 in Washington D.C. The official figure for the total value of these contracts is USD10.6 billion. ICT companies involved in the contract signing event included Chinese firms like China Mobile, China Telecom, Lenovo, etc., and U.S. firms Cisco, Dell, Emerson, EMC, Freescale and HP.

The U.S. Chamber of Commerce, the U.S. host of the signing ceremony, said in a statement that those buying contracts will support U.S. economic growth and job creation, since "with businesses in both countries struggling, these deals come at a critical time and will help create jobs and stronger commercial bonds between the U.S. and China."

Minister of Commerce Chen Deming, head of the Chinese delegation, said to the U.S. media that China will continue to encourage its domestic firms to import more from the U.S., and the country continues to welcome U.S. companies and trade-promotion agencies to be more active in China.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), the organizer for the Chinese Delegation, also organized a few important sideline events in U.S. before the April 27 signing ceremony. At the events senior executives from Chinese and U.S. companies and government officials delivered keynote speeches, highlightling the importance of the ongoing cooperation between the two countries, especially at a time of world economic downturn. Xinhuanet.com, 4/28/2009

USITO Notes: In recent years China has been sending buying delegations to the States annually, joined by senior representatives from both countries. USITO for the past three years has involved in the event by allying with our Chinese partner CCCME. This year as invited by CCCME we co-hosted a luncheon in San Francisco for the Chinese delegation led by Mdm Yao Wenping, head of CCCME, which attracted leading California and San Francisco government representatives.

The events will no doubt further consolidate the U.S.-China business relationships, and is especially meaningful for both countries in a period when both are encountering challenges of the world economic slowdown. Despite a few doubts that such signing ceremonies are somewhat symbolic, we should at least acknowledge the genuine efforts made by the Ministry of Commerce in trying to cut China's large trade surplus with U.S.

China Refutes the Cyber-Attack Accusation

On April 23rd Chinese Foreign Ministry denied the recent international media accusations that China has made deliberate attacks to a few western countries' cyber space. The ministry's spokeswoman said in a conference that China has been firmly opposing any such attacks and the country is severely cracking down on crimes that damage the Internet.

It was reported by the U.S. media that U.S. government is taking measures to protect its networks from attacks by hackers, which seemed to have originated in China. Responding to this question, the spokeswoman said that "the origin" can't be justified because of the ease of hiding identities or other similar tricks. She added that China's information network also faces threat of cyber-attacks, as statistics shows that 8 out of 10 computers in China with access to Internet have been attached by hackers, and 70 percent of botnets all over the world is in China. tech.sina.com.cn, 4/24/2009

USITO Notes: At the current stage it is a prevailing concern among all nations around the world that the cyber security is growingly challenged. Internet is a space without boundaries, so its security is not a single country's issue but the world should unite to crack the issue, foster mutual trust instead of suspicious accusations or the like. That said, it is hard to believe that there exists any government-led initiatives or activities to attack another nation's cyber space.

We need to acknowledge that in recent years the Chinese government has paid more attention to strengthening international cooperation in Internet security, not the pure antagonism as reported by a few foreign media. Some authorities such as the Ministry of Public Security, have set up ad hoc task force to work with the international community to crack down on cross-border cyber crimes through collaboration.

Trademark Protection Enhanced

From May 1, 2009, reputed trademarks will be better protected in China, according to an official judicial explanation on handling cases concerning reputed trademark infringement. The explanation makes clear-cut requirements for reputed trademarks as well as protection and recognition, among other items. It standardizes judicial measures in handling civil cases concerning trademark infringement and provides legal backup for judicial protection over well-established trademarks.

According to the official press release, the explanation is a basic step in implementing the nation's intellectual property rights strategy. The strategy was developed two years ago and official media said it was effectively observed.

Tian Lipu, minister of the State Intellectual Property Office, said last week that China had established a trademark law system that suited both China and international regulations. He said the country had strengthened the role of the judiciary in protecting IPR and the interests of the rights holder and the public were more effectively protected. people.com.cn, 4/27/2009