U.S. Trade Representative Releases Annual Report: China’s Measures to Protect U.S. Intellectual Property Rights Inadequate

The Office of the U.S. Trade Representative (USTR) released its annual “Special 301 Investigation” report on Friday, criticizing China’s ineffective measures to protect U.S. intellectual property rights and technology, and noting that China continued to be the largest producer of counterfeit masks, disinfectant and other protective gear during the epidemic.

It is reported that this report by the Office of the U.S. Trade Representative mainly covers the implementation of the “U.S.-China Phase I Trade Agreement” period. The report notes that while China has made amendments to its patent law, trademark law and related criminal laws over the past year, and has introduced several regulatory provisions for intellectual property protection, the reforms have yet to be implemented and fall short of all the fundamental changes needed to improve China’s intellectual property landscape.

IPR protection, along with China’s commitment to buy up to $200 billion in U.S. goods over the next two years, was a key element of the last Trump administration’s “Phase I trade deal” with Beijing early last year.

U.S. Trade Representative Katherine Tai told the Senate earlier this week that the U.S. and China have not yet scheduled the twice-yearly high-level consultations provided for in the agreement, but will work to ensure that China implements its commitments in the first phase, including the purchase of U.S. goods.