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China’s Theft of Trade Secrets Our No1 Concern: US Patent Chief

The US official said US businesses operating in China regularly complain about insufficient protections and enforcement over intellectual property


Under Secretary of Commerce and Director of the US Patent and Trademark Office, Kathi Vidal, and US Ambassador to China Nicholas Burns in Beijing, China, on April 16, 2024. Photo: Reuters
Under Secretary of Commerce and Director of the US Patent and Trademark Office, Kathi Vidal, and US Ambassador to China Nicholas Burns in Beijing, China, on April 16, 2024. Photo: Reuters

 

Intellectual property rights (IPR) continue to be a main concern for US businesses in China, Washington’s Patent and Trademark Office Director Kathi Vidal said on Tuesday.

Vidal, speaking at an event with attendees from the US business community and legal fields in Beijing, said US firms operating in the country face significant challenges with infringement.

“Whether it’s insufficient deterrence for infringement, challenges to pharmaceutical related patents, or the misappropriation of trade secrets, intellectual property rights protection and enforcement remain a key issue of concern in the US-China bilateral relationship,” she said.

Vidal said the issue harms US firms and workers, and that it is a concern not just held by US companies, but by other nations as well.

 

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She called recent policy shifts, including reduced transparency across the board, “troubling”.

“What we’ve heard is that we need to create a fair, non-discriminatory, and transparent IP environment for all.”

In a recent blog post, addressing the issue, Vidal said US businesses operating in China regularly cite insufficient protection and enforcement of IP as a top concern, and the Office of the US Trade Representative has placed China on its “priority watch” list for over a decade, detailing a long list of IP concerns reported by US businesses operating in China.

“We continue to work with our [Chinese] counterparts on higher penalties for infringement. We’ve seen that most recently and some of the laws that have been passed, but we heard today that although there is the availability of higher penalties, you’re not seeing that play out in action yet,” Vidal said.

On Monday, she met with Chinese Vice Premier Ding Xuexiang, where she said the United States attaches importance to the development of intellectual property cooperation with China, and is willing to strengthen dialogue, according to Chinese state media.

Ding said China wants to expand practical cooperation with the United States on intellectual property rights, address each other’s concerns, and foster a fair, just and non-discriminatory business environment.

 

  • Reuters with additional editing by Sean O’Meara

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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