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HA NOI UNIVERSITY
Faculty of International Study

Trade conflict between U.S and China

Teacher: Do Hai Anh
Group 11: Mai Huong Nguyen
Nam Phuong Dinh
Minh Tam Nguyen

Class: IS11
Course :International Study
Date: December 20, 2012

I. Introduction
It’s been four decades since U.S and China established trade bilateral relationship. The world witnessed the rising of China from the onset of market reform in 1978. Its role was profoundly strengthened after China entered the World Trades Organization (WTO) in 2001. China became the third largest economy in the world with average 10% growth annually over past quarter century (Kaplan 2006). As the result of globalization, U.S and China, the two economic giants experience a rapid rise in trade relationship. Both gain mutual benefits: U.S picked a great number of low-cost imports from China and got supports to finance parts of its budget as well as current account deficits. China, vice versa, still depended deeply on U.S export and investment (Prasad 2010) However, this web of ties seems to be uneasy with these two trading partners, due to the fact that each nation wants to maximize its profits by a set of trade enforcements. Consequently, there has been an escalated trade dispute between two largest economies. How did it manipulate the market and what was postulated by nation government and WTO intervention to assert the trade balance again? This report will analyze, evaluate two noticeable retaliations bounded by two Pacific powers: China’s failure to protect U.S intellectual property rights (IPRs) and definitive anti-dumping and countervailing duties of certain product from U.S with its trading partner. Eventually, the report draws general perspective about U.S-China trade conflict along with prediction future trading bond. As a high-performing economy, China is not only flourishing its rapid expansion but also demonstrate immense potential to reach its historic position as the world largest economy (Freidberg n.d., p.4). In trading relationship with U.S, China is now the second-biggest partner, third-biggest export market, and a titan in terms of import sources. As mentioned above, U.S-China tie is increasingly intricate. Many analysts claim that China on account of its immature free market economy has revealed flaws in transaction with counterparts and implement WTO provision. U.S major concerns about the commercial affair are the loose construction of protecting property intellectual right, unconstrained industrial policies and low engage in WTO agreements (Morrison, 2012, p.2). The first part of this report will examine one of the bilateral prominent disputes: U.S companies IPRs protection, mainly focus on U.S complaint about rampant barrier, China effort to deal with raising problem and mutual enforced agreement as long as WTO intervention. The second part performs another controversial quarrel: U.S accuses of dumping in its market toward China and the latter’s allegation to resist U.S anti dumping enforcement. II. Body

1. Intellectual property protection and enforcement between China and United States Since the reopening of the Chinese economy in the late 1970s, there have been perennial disputes between China and America about intellectual property protection and enforcement. However, this report just focuses on the United States’ complaint against China in terms of China‘s failure to protect and enforce intellectual property rights pursuant to the TRIPS Agreement in April 2007. There are four principal issues in this complaint including the high thresholds for criminal procedures and penalties in the intellectual property area, the failure of the Chinese customs authorities to properly dispose of infringing goods seized at the border, the unavailability of criminal procedures and penalties for infringing activities that involved either reproduction or distribution, but not both and ultimately the denial of...
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