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U.S.-CHINA JOINT COMMISSION ON COMMERCE AND TRADE

FACT SHEET: U.S.-CHINA JOINT COMMISSION ON COMMERCE AND TRADE

  October 29, 2009

U.S. Commerce Secretary Gary Locke and U.S. Trade Representative Ron Kirk, together with Chinese Vice Premier Wang Qishan, co-chaired the 20th JCCT in Hangzhou, China, on October 28-29, 2009. U.S. Secretary of Agriculture Tom Vilsack also participated. Other participants included U.S. Ambassador to China Jon Huntsman, U.S. Trade and Development Agency (TDA) Acting Director Leocadia Zak, and representatives from the Treasury and State Departments.
A full range of Ministers from China attended, including Commerce Minister Chen Deming, Agriculture Minister Sun Zhengcai, National Energy Bureau Director Zhang Guobao, National Tourism Administration Chairman Shao Qiwei, and General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) Administrator Wang Yong. Vice Ministers from the following Chinese agencies also were represented: Ministry of Environmental Protection (MEP), Ministry of Industry and Information Technology (MIIT), Ministry of Health (MOH), Civil Aviation Administration (CAAC), the Ministry of Transportation (MOT), Ministry of Science and Technology (MOST), and the State Council Legislative Affairs Office (SCLAO).
Outlined below are outcomes of the topics discussed.
Agriculture
China announced its intent to reopen the Chinese market to U.S. pork products and live swine.
The United States awaits China’s official announcement to ensure that the measure is consistent with science-based, international standards.
Two-way trade of agricultural, fish, and forest products between the United States and
China has grown in recent years to over $21 billion per year.
Clean Energy
China agreed to remove local content requirements on wind turbines.
China's renewable energy market is expected to reach $100 billion by 2020, and wind
energy is the fastest growing component.
Distribution Services
The United States welcomes news that China is in the process of concluding its licensing procedures for certain qualified direct selling services companies.
Government Procurement China will require that products produced in China by foreign invested enterprises (FIEs) are treated as domestic products and will issue rules in this regard.  The United States and China will establish a multi-agency working group to regularly conduct discussions on issues involving government procurement and purchases by state-affiliated enterprises and organizations and private parties that make purchases in accordance with national strategic objectives.  China committed to submit a revised offer as early as possible in 2010 to accede to the WTO Government Procurement Agreement (GPA).
Information Security
China confirmed in working group discussions that the April 29, 2009, announcement by AQSIQ, MOF and CNCA, that China’s Compulsory Certification (CCC) testing and certification rules for 13 categories of information security products apply only to products procured by Chinese government agencies.
 China agreed to establish a dialogue with the United States regarding global practices for trade in information security products.
Intellectual Property Rights (IPR) China gave assurances that it will impose maximum administrative penalties on Internet infringers and has begun a four-month campaign to clamp down on Internet piracy.  China announced its public notice, published yesterday, conveying to state-run libraries the importance of strengthening protection of copyright-protected academic and medical journals.  China agreed that it will work closely with the United States to resolve U.S. concerns about a new Ministry of Culture circular relating to online music distribution that is creating serious problems for the U.S. music industry.  The Intellectual Property Working Group identified next steps on key issues, including: China’s further promotion of software legalization of enterprises and exchanges of information on measures for promoting software legalization; China’s establishment of a Broadcast Tariff Rate as soon as possible; and opportunities for interested rights holders and government experts to provide feedback on China’s new Patent Law amendments and new implementing regulations. These outcomes will bring significant benefit to U.S. rights holders, given the importance of intellectual property rights to the U.S. economy and the dynamic growth of the Internet in economies around the globe. The copyright industry estimates losses in 2008 due to piracy reached approximately $7 billion, of which over $500 million in revenues were lost to Internet music piracy.
Medical Devices
China committed that product recall regulations will not be duplicative or redundant and the Ministry of Health and the State Food and Drug Administration will be the relevant authorities for medical device recalls.
 China will adopt a risk-based approach that will not automatically lead to clinical trials for medical devices in a given class, and consider the use of results from a clinical trial conducted outside of China to support a local clinical trial exemption.
 China will accept a prior approval document of a medical device issued by a foreign country regardless of its exporting origin, country of manufacture or legal manufacture to satisfy any prior approval registration requirement.
 China will consider an exemption of requiring product samples to be tested in Chinese test labs prior to approval if the manufacturer demonstrates compliance with international standards and provides sound scientific evidence.
 China will strive to implement regulations, rules, and notices that are consistent with guidance documents for medical devices issued by the Global Harmonization Task Force and the Asia Harmonization Working Party.
According to industry, China’s prior approval requirement could have impacted over $350 million in U.S. products. The clinical trials outcome will save U.S. companies hundreds of millions of dollars.
Pharmaceuticals
China will continue to strengthen its oversight and enforcement of active pharmaceutical ingredients (APIs) and counterfeit pharmaceuticals by undertaking initiatives such as the establishment of a Drug Master File system, enforcement of record-keeping requirements for companies that manufacture and sell APIs, and regulation of unregistered Chinese companies advertising and marketing APIs at foreign trade shows and on the Internet.
 China identified SFDA as its single point of contact for the Interagency Coordination Conference for Fighting the Production and Sales of Counterfeit Drugs.  China agrees to share information with the U.S. Food and Drug Administration on the activities of the Interagency Coordination Conference.  China and the United States agree to continue the dialogue on pharmaceutical data protection.
The U.S. pharmaceutical industry loses billions of dollars of annual revenues due to counterfeit medicines. The average reported value of counterfeit medicines seized in 2008 was over $5 million.
Travel and Tourism
The United States and China agreed to implement Phase II of the Memorandum of Understanding (MOU) that opened the market for the sale of packaged leisure travel from China to the United States to include an additional 12 jurisdictions, bringing the total to
21.
 The United States and China have agreed to hold a high-level meeting of the JCCT Tourism Working Group in January 2010 to sign a program of work that will enhance travel under the MOU.
The United States anticipates that inbound travel from China will increase by 15 percent
in 2010.
Cooperative Activities
Agriculture: The U.S. Department of Agriculture and China’s Ministry of Agriculture (MOA) announced a Memorandum of Understanding on Cooperation in Agriculture, which renews the Joint Committee on Cooperation in Agriculture (JCCA) and provides additional opportunities for MOA and USDA to engage on cooperative agricultural issues.
In 2008, the United States exported over $13 billion in agricultural products to China, of which the majority were derived from biotechnology.
Anti-Monopoly Law: The United States and China committed to continuing the Anti-Monopoly Law dialogue under the U.S. Trade and Development Agency.
Dietary Supplements: The United States and China agreed to hold a government-to-government exchange of information on dietary supplement regulation by March 31, 2010.
Energy Cooperation Program: The United States and China supported the launch of the Energy Cooperation Program (ECP), a public-private partnership focused on commercialization of clean energy solutions. This effort reflects an ongoing partnership among the Departments of Commerce and Energy, TDA, and U.S. industry with respective Chinese counterparts.
Environmental Cooperation: The United States and China agreed to hold the second U.S.China Environmental Industries Forum in October, 2010, and a second U.S.-China E-Scrap Recycling Summit in May, 2010.
China’s rapidly growing environmental market is currently estimated at over $25 billion.
Global Distribution Services Forum: The United States and China agreed to hold a forum addressing the expansion of travel distribution services in China, including computer reservation system technology.
Green Building Standards: The United States and China agreed to hold a Green Building Standards Seminar by March 2010.
Healthcare: TDA funded two grants in Sichuan province to assist in the development of provincial healthcare IT strategy and emergency response capabilities to enable quality healthcare to reach rural communities.
Industries and Competitiveness Dialogue: The United States and China launched a new Vice Minister-level dialogue focused on innovation and industrial policy.
Intellectual Property Rights:
Intermediary Liability on the Internet: China and the United States will jointly hold a
program with public and private participants to discuss the issue of intermediary legal
liability on the Internet.
 Trademark Filing: China and the United States will exchange information about handling
bad faith trademark registration practices through holding seminars or forming a task
force under the JCCT IPR Working Group
Legal Exchange: China and the United States agreed to hold the U.S.-China Legal Exchange next year.
Standards and Conformity Assessment: China and the United States will convene a public-private meeting by February 2010 on standards and conformity assessment procedures. In addition, TDA intends to fund additional workshops on priority standards issues over the next three years.
Transparency: The United States and China agreed to continue cooperation on transparency and administrative rulemaking and formulated a 2009-2010 work plan to enhance transparency and predictability for market participants.
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如果我们仔细阅读美丶中双方在此次会议中达成的所有协议,不难看到,在双方争执的许多具体问题上,中国政府作出的实质性的让步多得多;而美国方面则更多地是表示要对一些有争议的问题进行进一步加以“考虑”,换言之,美方做出的口头承诺多余实质性让步。

中国方面做出的主要让步包括︰同意恢复从美国进口猪肉制品和生猪;中国解除对美国风动涡轮机进口的限制;中国同意在政府采购中对美国在华投资企业视同国内企业;中国给美国的几家直销(即传销)公司颁发营业执照,中国在医药制品上将采取更加开放的政策,对在中国市场的医药制品检验将接受美国及其他国家的实验检测结果作为免检的依据,中国将进一步采取措施加强对知识产权的保护,打击网络音乐、电影制品与软件盗版,打击图书馆不遵守美国学术期刊版权的行为;等等。

而美国方面所做出的承诺则主要包括︰美国方面对是否同意给与中国“市场经济地位”的问题进行认真考虑,尤其是将对中国在市场化方面的进步“加以考虑”;为了促进中国和美国之间在人员往来和旅游方面的发展,美国方面承诺将对其对中国公民访美签证的严格措施加以改进(这其实不是对中国的所谓“让步”,因为美国萎靡的经济希望更多中国游客前往美国旅游消费。果然,美国商贸部的网站也是把这列为其成果之一的),等等。

一个非常有意思的细节是中丶美双方对此次会谈结果的不同处理。为期一天的会议刚刚闭幕,美国商务部的网站立即公布了此次谈判所达成的协议。在本稿发稿之前,笔者分别查看了中国商务部的网站和中国官方新闻社发布的新闻通稿。中国商务部网站没有关于双方协议的任何细节,而新华社的通稿除了提到双方达成有关协议之外,对协议的内容则是语焉不详。

不难理解,中丶美两国政府在公布协议内容上作法的差异,绝不仅仅是由于两国政府的行事风格不同,而主要原因则是,中国方面在此次谈判中作出了巨大的、实质性的让步,以迎接奥巴马的来访。这些让步当然使得美国乐于向其国民公布政府的谈判成果;而中国政府可能不得不考虑如何在向中国普通民众公布自己所做出的让步的同时不至于引起民众舆论的反弹。

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