Beijing criticizes update of IPR report

China expressed serious concern over the latest update of the Section 301 report by the United States and its accusations targeting China’s intellectual property rights practices, the Ministry of Commerce said on Thursday.

China has repeatedly emphasized that the investigation and related measures are based on US domestic laws and are intended to implement unilateralism and protectionism. The US has violated promises it has made to all World Trade Organization members and has ignored and broken rules and regulations, said Gao Feng, the ministry’s spokesman.

“China will not accept groundless accusations,” Gao said.

“Innovation and intellectual property are by no means exclusive patents of the US. The use of IPR and the promotion of economic and social progress are also not the exclusive rights of an individual country,” said Ma Yu, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.

Ma said IPR should not be turned into a tool for a country to suppress development of other countries or promote its own self-interests.

On Monday, the US proposed to step up scrutiny over technology exports in 14 key high-tech areas including artificial intelligence and microprocessor technology.

Gao said China is currently evaluating the impact of such a proposal.

“We think national security can be achieved in an open market,” he said. “Overgeneralizing the national security issue in order to erect unnecessary trade barriers will do no good to national security or balanced trade development.”

Experts contend the proposal may harm other countries’ high-tech industries, but will also backfire to cause US technology companies to lose business opportunities.

“Many products of US hightech manufacturers have already been deeply integrated into the global value chain. This move will damage the financial interests of the US companies,” said Liu Yingkui, a researcher at the China Council for the Promotion of International Trade.

It will also hurt major US multinational companies, particularly those with production facilities in China, the European Union, South Korea and Japan, because they use them to make goods or provide services, said Sun Fuquan, a researcher at the Chinese Academy of Science and Technology for Development.