This is from the widely reported speech on trade and commercial policy that
Xi Jinping, President of the People's Republic of China, gave at the Boao Forum in Hainan, China, this past Tuesday, April 10. The Boao Forum itself is interesting, often referred to as the Davos of Asia. We'll say a word or two about the Forum in a minute, but first we need to look a little more closely at President's Xi's comments. We have led off with his remarks on the protection of intellectual property rights. That editorial choice has more to do with the bilateral context - America's 301 case against China and the large and growing list of potential trade sanctions - than with China's own priorities.
On China and IPR. Still, to stay with that issue for just a moment, here is a more complete version of what President Xi had to say about China and intellectual property rights:
Third, we will strengthen protection of intellectual property rights or IPR. This is the centerpiece of the system for improving property rights protection. And it will also provide the biggest boost in enhancing competitiveness of the Chinese economy. Stronger IPR protection is the requirement of foreign enterprises and, even more so, of Chinese enterprises. This year we are reinstituting the State Intellectual Property Office, to strengthen the ranks of its officers, step up law enforcement, significantly raise the cost for offenders, and fully unlock the deterrent effect of relevant laws.
We encourage normal technological exchanges and cooperation between Chinese and foreign enterprises and protect the lawful IPR owned by foreign enterprises in China. At the same time, we hope foreign governments will also improve protection of Chinese IPR.
In other elements of his Boao Forum speech, President Xi promised:
To "raise foreign equity caps" in key sectors, such as banking, securities, and insurance;
To further liberalize investment restrictions in manufacturing, including the automotive sector. "Investment environment is like air," he said, "and only fresh air attracts more investment from the outside." Now, he said, China will have to rely more on improving its investment environment; and he added ...
To expand imports. In light of the debate about trade balances - and especially America's large trade deficit with China - this section too is worth quoting at length. President Xi said:
Fourth, we will take the initiative to expand imports. Domestic demand is the fundamental driving force for China's economic development and an essential requirement for us to meet the people's ever-growing need for a better life. China does not seek trade surplus. We have a genuine desire to increase imports [and] achieve greater balance of international payments under the current account. This year, we will significantly lower the import tariffs for vehicles and also reduce import tariffs for some other products. We will work hard to import more products that are competitive and are needed by our people. We will seek faster progress toward joining the WTO procurement code. We hope developed countries will stop imposing restrictions on normal and reasonable trade of hi-tech products and relax export controls on such trade with China.
This November, we will hold the first China Import Expo in Shanghai. This is a major platform. It will be an annual event. It is not just another expo in an ordinary sense but a major policy initiative and a commitment taken of our own accord to open the Chinese market. Friends from around the world are welcome to participate in Expo. I wish to emphasize that, with regard to all those major initiatives [for] opening up that I have just announced, we have every intention to translate them into reality sooner rather than later.
