Monday, October 29, 2012

CHINA: WTO

WTO finally pulls up errant China

China has also restrained the number of foreign films that can be released on her own soil to 20 each year. This policy has given birth to rampant piracy across the country, where movie or music DVDs are available at sums as paltry as $1. Even though American movie companies have tried tooth and nail to keep prices low, they are suffering. Although the WTO has nudged China to clamp down on piracy, it is difficult to curb bootlegging altogether in this vast country (which is an outcome of China’s own pigeonhole). China’s unprecedented growth over the last 3 decades was primarily triggered by export of manufactured goods that have been outsourced through China by the West. But this Asian giant has been very slyly restricting imports, except for raw materials and intermediate goods (for example computer chips are imported from Japan to be assembled in China and then to be shipped to the US).

The US sees this saga as an opportunity to ensure that China complies with the rules of the WTO and ergo protects intellectual property rights, something they haven’t done since they joined the organisation in 2001. But knowing the dragon’s incorrigible tendencies to act in self interest, this dispute may not be dying down very soon. For them, back to the wall literally means back to the Wall...


Source : IIPM Editorial, 2012.

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