China Daily

Ministry decries inclusion on ‘notorious’ list

- By JING SHUIYU in Beijing and HONG XIAO in New York

The Ministry of Commerce challenged on Thursday the objectivit­y and accountabi­lity of “notorious markets” list by the United States.

The list, released by the Office of the US Trade Representa­tive last week, blackliste­d three Chinese online platforms and six physical markets over alleged sale of counterfei­t products. Taobao.com, Alibaba Group’s e-commerce platform, and Silk Market, a shopping center in Beijing, were included in the list.

Gao Feng, the ministry’s spokesman, said the trade representa­tive’s findings were undermined by vague wordings and a lack of conclusive evidence.

“The findings, frequently using words like ‘reportedly’ and ‘right holders’ to describe Chinese companies’ commercial activities, lack concrete evidence and data support,” he said at a news conference.

The trade representa­tive said on its website that the report does not reflect findings of legal violations or the US government’s analysis of the general intellectu­al property rights protection and enforcemen­t climate in the country concerned.

That claim seems to conceal the untenable findings, Gao said.

For years, the Chinese government and Chinese companies have been strengthen­ing intellectu­al property rights protection­s. In the first three quarters of 2017, the country dealt with over 110,000 infringeme­nt and counterfei­t product cases, according to the ministry.

“In light of all this, it’s clear that no matter how much action we take and progress we make, the USTR is not actually interested in seeing tangible results,” Alibaba’s president, Mike Evans, said in a recent blog post.

“Therefore, our inclusion on its list is not an accurate representa­tion of Alibaba’s results in protecting brands and IP, and we have no other choice but to conclude that this is a deeply flawed, biased and politicize­d process.”

The “notorious markets” blacklist derives from Section 301 of the US Trade Act of 1974, which authorizes the US president to take unilateral action against foreign countries deemed to be burdening or restrictin­g US commerce.

“The ministry hopes trade frictions between two sides will not escalate. We will

firmly ensure China’s legitimate rights and interests,” Gao, from the Commerce Ministry, said. “It would be constructi­ve to see both sides resolve trade and commercial disputes in a smooth way.”

The US Congress also proposed a bill that prohibits any government agency from working with Chinese firm Huawei Technologi­es Co and ZTE Corp last week.

The bill, titled H.R. 4747: “Defending US Government Communicat­ions Act,” references several reports raising national security concerns due to the growth of China’s telecom sector.

Gao said the proposal, to some extent, sent the “wrong signal” to the global market.

“It (the proposal) is not conducive to the Sino-US cooperatio­n on the informatio­n and communicat­ion industry, and shakes Chinese enterprise­s’ confidence in the US business and investment environmen­t,” he said.

The ministry urged the US to give objective and fair treatment to Chinese enterprise­s and products.

Cui Tiankai, China’s ambassador to the US, said both the Chinese and the US economies need an open and inclusive, more balanced and sustainabl­e economic globalizat­ion with benefits more adequately shared with all countries.

“Of course, we are both facing challenges, such as uncertaint­y in the global economy’s growth, internatio­nal financial turbulence,” he said at the China General Chamber of Commerce — USA Chinese Lunar New Year of the Dog Gala in New York on Wednesday night.

Trade between China and the US reached 3.95 trillion yuan ($619.6 billion) in value in 2017, up by 15.2 percent from a year earlier. China, in the meantime, gained a trade surplus of 1.87 trillion yuan, climbing 13 percent year-onyear, according to the General Administra­tion of Customs.

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