Monday, March 29, 2004
Japan urges China to stamp out pirated goods
Reuters Tokyo, March 29
China must to do more to cut down on pirated goods to bring itself in line with World Trade Organisation (WTO) agreements, Japan's trade ministry said on Monday, saying Chinese pirated goods were hurting Japanese firms.
The call comes at a time when China's booming economy is becoming increasingly important for Japan's economy both as a market for its exports and a manufacturing base for firms looking to cut costs.
"...there has been little improvement in the abundance of counterfeit and pirated products, and other infringing goods," the ministry said of China in a new list of 15 "unfair" trade policies of major trading partners.
"Of Japanese companies that have suffered injury from counterfeit and pirated products in foreign countries, about half are caused by those made in China," it said.
Issues with China accounted for seven of 15 items on the list.
Japan plans to keep asking China to fulfil its WTO obligations, but a METI official said it had not yet decided whether to formally raise the issue at the WTO.
"At the moment we have not yet decided whether to bring it to a formal WTO dispute settlement," said Tatsuo Sato, director of METI's office for WTO compliance and dispute settlement.
METI also took issue with China's policy of giving refunds of value-added tax on semiconductors to domestic producers but not to importers, a policy which led the United States to file a WTO complaint, the first against China since it joined the WTO in December 2001.
Japan, a key player in the $19 billion Chinese semiconductor market, has applied to the WTO to be an interested party in the case, meaning it would be allowed to express its opinions when the WTO looks at the US complaint. Reports that China may soon introduce a policy to prohibit dealers from selling both imported and domestic cars using the same sales network in China is also a source of concern, METI said, adding that it could create unfavourable conditions for selling imported automobiles.
METI also called on the United States to rectify anti-dumping steps on certain hot-rolled steel products from Japan by the end of July, a deadline agreed between the two countries.
Trade polices of the European Union and ASEAN countries were also mentioned in METI's list.
The 15 issues were among about 100 identified in an annual report on unfair trade practices compiled by a panel of the Industrial Structure Council, which advises METI.
© Hindustan Times Ltd. 2004.