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US trade officials expect China to cooperate on piracy

In a rare concession to US trading demands, China is expected to pledge this week to crack down on pirating and counterfeiting of software, DVDs and other forms of intellectual property, according to American trade officials who have been preparing for trade talks here today.

Enforcement of intellectual property rights in China has been an economic priority for the George W. Bush administration during an election year in which the White House wants to show it is getting tough protecting American industry from unfair trading practices.

But the administration's previous strategy of sending senior officials to Beijing to publicly demand those changes failed to move the Chinese. Only by adopting a narrow agenda and carefully choreographing a one-day session at which both sides appear to be making concessions has the administration been able to coax the semblance of a compromise from the Chinese.

Now, after weeks of consultations in Beijing, in preparation for the meeting here today, administration officials expect the Chinese to present a "credible and effective action plan to reduce piracy and counterfeiting," according to Josette Shiner, deputy US trade representative.

The plan is likely to involve more aggressive enforcement by Chinese police officials, who have tended to ignore the brisk retail business in counterfeit software, DVDs and music CDs throughout China.

China is also expected to agree to speed up the full opening of its market to American goods and services -- something that had been scheduled to happen by December but may now take place months sooner.

In some other areas of dispute, though, people who have been involved in the briefings say that China may offer little more than nebulous promises -- a nonspecific commitment to stop using new taxes and new technical standards to block imports from the US, for example, and a stated intention to stop forcing the transfer of American technology to Chinese companies in exchange for doing business in China.

And on some other important areas of disagreement between the two countries -- including China's currency controls and labor practices, the textile industry and subsidies that the US pays to farmers -- the issues will not even be on the agenda.

Democrats are almost certain to seize upon the limitations of today's talks as evidence that the Bush administration is not being firm enough with China.

For China to make any concessions now is as much a reflection of new economic conditions as a serious change of heart. As Chinese leaders contend with an overheated economy and signs of potentially runaway inflation, they want a sure footing for their relationship with the US. If its economic bubble bursts, China will need an open US market if it hopes to have a soft landing.

"The Chinese understand this is not the time for an argument with the US," said Nayan Chanda, Asian academic and director of publications at Yale's Center for the Study of Globalization.
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