While praising the Chinese government for recent steps to strengthen its regulations against counterfeiting, outgoing U.S. Commerce Secretary Don Evans told attendees at the Forum on Intellectual Property Rights Protection in Beijing Thursday that China must start to show results.
“Process is not progress. Results are progress,” Evans said. “Commissions, panels, initiatives and memos of understanding are all encouraging signs, but they count for little unless they produce results.”
The Bush administration said it has upheld its end of the bargain on various trade deals with China, which is evident in the large amounts of Chinese imports now entering the United States.
“It is absolutely essential that we see demonstrated results from China on IPR (intellectual property rights) protection and the other structural issues that are compromising the Chinese economy in order to establish greater balance in our relationship,” Evans said.
Evans pointed out the recent case involving the alleged copying of GM Daewoo’s popular car, called Spark, by Chery Automobile Co., a state-owned Chinese auto manufacturer. Chery Automobile called its car model QQ.
“This incident defies an innocent explanation,” Evans said. “The QQ and the Spark are twins because both cars are built from the same DNA — the proprietary mathematical data and formulas — that were stolen from GM Daewoo and used to build the QQ.”
Evans suggested that China increase its fines and penalties against product counterfeiters. “Until China has tough penalties — that can’t be written off — the pirates will still be in business,” he said.
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