Republican Iowa Senator Chuck Grassley, chairman of the Senate Finance Committee, sent a letter this week to the Minister of Commerce for the People's Republic of China requesting China make a serious effort to improve its compliance with its World Trade Organization obligations, according to a press release issued by the committee.
Outlining several areas in the letter where China is falling short in compliance with WTO standards, Grassley said China must pay more attention to issues surrounding transparency, non-tariff barriers, tariff-rate quotas, export subsidies, value-added taxes, services, currency, and intellectual property (IP) rights.
The letter specifically states that while China has "good intellectual property rights (IPR) laws on its books, it is sorely lacking in enforcement and coordination."
China's factories that violate copyright, trademark, and patent laws are not being shut down and violators are not being prosecuted, the letter said.
Senator Grassley wrote that U.S. businesses continue to experience "significant IPR problems in China that cost billions of dollars each year in lost sales. It is estimated that counterfeits account for 15 percent to 20 percent of all products made in China."