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A icle
China & WTO Re . 2018:1; 7-34
h p://dx.doi.o g/10.14330/cw .2018.4.1.01
pISSN 2383-8221 • eISSN 2384-4388
China’s In ellec ual P ope y
Righ s Commi men s in he WTO:
Legal and Economic Implica ions
Lenka Foj íko á
∗
This a icle assesses he compliance o China’s domes ic laws in he a ea o in ellec ual
p ope y igh s p o ec ion wi h he WTO Ag eemen on T ade-Rela ed In ellec ual P ope y
Righ s (TRIPS), which China obliged o accep upon i s en ance in o he WTO. I also
discusses he implica ions which esul om he implemen a ion and en o cemen o he
in ellec ual p ope y igh s in China o doing business in China. The signi icance o
in ellec ual p ope y igh s p o ec ion o achie ing he s a egic objec s o mula ed by
China’s policy-make s and China’s epu a ion in he wo ld is ackled, as well. Quali a i e
esea ch based on he concep o compliance showed ha China’s compliance wi h i s
TRIPS obliga ion should be e alua ed wi h espec o di e en coun y-speci ic as well as
coun y non-speci ic ac o s. Howe e , he expe ience om he his o ical de elopmen o he
leading wo ld in en o s, such as Japan o he Uni ed Kingdom, should also be conside ed.
Keywo ds: China, WTO, In ellec ual P ope y Righ s, TRIPS Ag eemen , S a e In ellec ual
P ope y O ice, Dispu e Se lemen Body, WIPO
I. In oduc Ion
A e he announcemen o economic e o ms by Deng Xiaoping in he la e
1970s, China made massi e s eps o in eg a e in o he wo ld economy. The s a e
China and WTO Re iew
* Associa e P o esso a he Facul y o Economics o he VŠB-Technical Uni e si y o Os a a,
Czech Republic; Membe o he Boa d o Czech ECSA. Ph.D. (VŠB-TU, Os a a). ORCID:
h ps://o cid.o g/0000-0002-1544-2421. The esea ch a icle was suppo ed by he Czech Sci-
ence Founda ion, P ojec No. [17-22426S] “Law Aspec s o China’s Inco po a ion in o he
Global T ade Sys em.” The au ho may be con ac ed a : [email p o ec ed] / Add ess: VŠB-
Technical Uni e si y o Os a a, Facul y o Economics, Ha líčko o náb. 38a, Os a a 702 00
Czech Republic.
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monopoly o o eign ade and he policy o au a kic sel - eliance we e abandoned
and o eign ade decisions we e decen alized. Special en e p ise zones we e
c ea ed as ee ade a eas.
1
No malizing China’s diploma ic ela ions du ing
he 1970s wi h he US, Japan and o he de eloped ma ke o ien ed coun ies
con ibu ed o li ing i s in e na ional isola ion. In 1971, China was admi ed o he
UN, and in 1980, egained i s membe ship in he mos in luen ial economic and
inancial o ganiza ions, such as he Wo ld Bank and he In e na ional Mone a y
Fund (“IMF”).
2
Since he ea ly 1990s, China has inc eased i s global ou each and
pa icipa ion in o he in e na ional o ganiza ions.
As China has isen o a wo ld economic powe , i s name is spelled in di e en
o ums. China has eplaced he Ame ican and Eu opean con olled in e na ional
inancial ins i u ions as he p inciple lende in La in Ame ica. I is no only he
la ges in es o in A ican ene gy and mine al esou ces, bu also he p inciple
ma ke o Saudi A abian, Sudanese and I anian pe oleum.
3
In he i s decade
o he new millennium, China’s ise, oge he wi h o he eme ging de eloping
coun ies ha became known as he BRICS (B azil, Russia, India, China and
Sou h A ica), has changed he a chi ec u e o wo ld ade.
4
China is cu en ly he
wo ld’s bigges manu ac u e and expo e . While in 1973 China’s sha e in he
wo ld me chandise expo s was only 1 pe cen , i was 14.2 pe cen in 2015.
5
This
means ha China´s sha e in he wo ld expo s inc eased mo e han ou een imes
du ing 1973‒2015, while he sha e o he US declined om 12.2 o 9.4 pe cen
du ing he same pe iod.
6
In addi ion, he g owing ade su pluses wi h i s main
ading pa ne s enable China o achie e he highes ese es o o eign exchange
in he wo ld, which eached mo e han USD 3 illion in 2016,
7
holding o e
USD 1.3 illion in he US easu y no es.
8
In pa icula , Chinese yen (RMB)’s
inclusion in o he special d awing igh s (“SDR”) on Oc obe 2016 is a miles one
in he in e na ionaliza ion o i s cu ency; i is an a i ma ion o he success o
China's economic de elopmen .
9
Since China has eco ded economic success in
many a eas, i has become he subjec o equen academic discussions. Today,
many au ho s a e analyzing he impac o China’s economic g ow h and i s WTO
membe ship on o he coun ies a ound he wo ld.
10
China’s changing ole in wo ld ade is no exp essed only by i s g owing
ma ke sha e, bu also he s uc u e o i s expo s. The e o m measu es ca ied ou
by China’s au ho i ies du ing he 1980s and he 1990s, ollowed by he open‒doo
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China’s IP Commi men in WTO
policy, a ac ed in es o s om he US and o he de eloped coun ies, who mo ed
hei p oduc ion o China, including new echnology and echnical measu es. In
esponse o his challenge, China eco ded success in he p oduc ion and expo
o high- ech p oduc s. While he US and Japan eco ded a decline o hei ma ke
sha e in high- ech p oduc s du ing 1994-2007, China signi ican ly inc eased i
eaching 21.2 pe cen in 2007.
11
In 2015, China’s high- echnology expo has
al eady eached USD 554.3 billion, which accoun ed o 25.8 pe cen o he wo ld
ma ke sha e.
12
Howe e , da a abou high- ech expo s ha e o be conside ed
ca e ully because China is included in o mul ina ional p oduc ion chains, in which
p oduc ion and sales a e dis ibu ed among se e al coun ies a ound he wo ld.
China became he 143 d Membe S a e o he Wo ld T ade O ganiza ion
(“WTO”) on Decembe 11, 2001 a e 15 yea s o bila e al and mul ila e al
nego ia ions.
13
When China en e ed he WTO, i would ob iously ha e o accep
no only he gene al ules o he mul ila e al ade sys em, bu also speci ic
commi men s in o de o libe alize i s ade egime and o p o ide easie access o
i s in e nal ma ke o supplie s om o he WTO membe s. Al hough China has
now been a membe o he WTO o mo e han 15 yea s and eco ded signi ican
p og ess in ade libe aliza ion, he p o ec ion o in ellec ual p ope y igh s
(“IPRs”) in China has been he subjec o se ious discussion and doub s all he
ime. Did China implemen he WTO’s commi men s in o i s laws? Why should
China accep i s WTO’s commi men s? Wha ole does in ellec ual p ope y
p o ec ion play in he cu en Chinese economy? Wha implica ions does i ha e
on he p i a e sec o in China? Wha implica ions does i ha e on in es o s and
pa en -holde s om he o he WTO membe s? Especially, hese ques ions open
he doo o in e es ing discussion.
The a icle will begin by de e mining he IPRs issue in he ame o he WTO
ag eemen s and he complex o he mul ila e al ade ules. A mechanism o
sol ing ade dispu es among he WTO membe s is also in oduced. The a icle
will hen ocus on China’s commi men s in he a ea o IPRs and explo es i China
implemen ed i s commi men s in o i s laws. I will discuss di e en ac o s and
condi ions ha ha e an impac on he ul ilmen o China’s commi men s in he
WTO in he a ea o IPRs including he en o cemen o law on he s a e and local
le el. This means ha he implemen a ion o IPR’s commi men s in o China’s
law as well as he e ec i e en o cemen o law is an impo an assump ion o
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achie ing posi i e esul s and he p o ec ion o inno a o s and pa en -holde s. The
a icle will men ion no only he p og ess, bu also cu en issues conce ning he
p o ec ion o IPRs ha ha e emained in China all he ime. The a icle will ackle
hese issues in a complex o China’s membe ship in he WTO, including he WTO
dispu e se lemen sys em. Finally, i will conside he economic implica ions o
IPRs (bo h esiden s and non- esiden s om he o he WTO Membe S a es) in
China and he signi icance o IPR p o ec ion o he Chinese go e nmen .
II. In ellec ual P oPe y Igh s:
F om ga o W o
Al hough he alue o in e na ional ade in in ellec ual p ope y (“IP”) is no
s a is ically eco ded, “in ellec ual p ope y is in o ma ion wi h a comme cial
alue.”
14
The owne s o in en ions, designs o o he c ea ions ha e a igh o
nego ia e paymen in e u n o o he s using hem. In con as o goods, he s ock
o his knowledge does no diminish wi h i s consump ion and he ma ginal cos
o dissemina ing hem is o en ze o.
15
Howe e , IP, especially he de elopmen
o echnological inno a ions, usually equi es conside able in es men s and hus
cos . The IPRs has special signi icance when de eloped coun ies would ecognize
ha apidly eme ging economies, such as BRICS, a e able o compe e wi h hem
in many indus ial a eas. Al hough ade in coun e ei goods has been a p oblem
o a long ime, as echnologies o duplica ion became mo e ad anced and he
ep oduc ion o IP easie and cheape , ade in goods embodying s olen IP became
a mo e se ious issue.
16
A. The Fi s S eps in he Global IPRs P o ec ion
Be o e ounding he WTO, se e al in e na ional con en ions laid down s anda ds
o he p o ec ion o IP. The mos impo an a e he Pa is Con en ion (on
copy igh ), he Rome Con en ion (on neighbou ing igh s), and he T ea y on
In ellec ual P ope y in Respec o In eg a ed Ci cui s. These and many o he s
con en ions a e adminis e ed by he Wo ld In ellec ual P ope y O ganiza ion
(“WIPO”). Howe e , he WIPO was ega ded as ine ec i e in en o cing he
a ious ea ies and he in e na ional con en ions we e no able o mee he
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China’s IP Commi men in WTO
inc easing needs o business communi ies ha a ose in he ade a ea.
17
Unila e al
measu es o ensu ing he IP p o ec ion enac ed by he indi idual coun ies on he
basis o na ional legisla i e, could no subs i u e hose accep ed on he mul ila e al
le el, ei he . Thus, mul ila e al ade ules s a ed o be de eloped h ough he
Gene al Ag eemen on Ta i s and T ade (“GATT”) in he la e 1940s, bu he
p o isions and wo k ela ed o IP we e also limi ed.
In p ac ice, s eng hening he IP p o ec ion was no a p io i y o all coun ies.
While he OECD coun ies called o mul ila e al ules and he en o cemen o
IPRs, many de eloping coun ies a gued ha he adop ion o he OECD le els
o IP p o ec ion would be de imen al o he wel a e o hei popula ion and he
de elopmen o hei economy.
18
Ano he conce n o mos de eloping coun ies
was ha a g ea e p o ec ion o IPRs would s eng hen he monopoly powe o
mul ina ional companies, he eby de imen ally a ec ing he poo popula ion by
aising he p ice o medicines and ood.
19
On he o he hand, newly indus ializing
coun ies especially in Asia, dependen on he ans e o echnology om
de eloped coun ies, ealized ha inwa d o eign di ec in es men s (“FDI”)
would be condi ioned by g ea e IP p o ec ion. Tha is why he IP issue was
nego ia ed o se e al yea s du ing he GATT ounds o nego ia ions whose big
pa was o ind he solu ion equi ed o accep ade-o s om all coun ies (o ,
in o he wo ds, a ade-o be ween IPRs and he es o he agenda). Howe e ,
in con as o o he agenda, he nego ia ions abou IPRs we e no abou eeing
ade, bu abou mo e p o ec ion. A he end o he U uguay Round in 1994, he
con ac ing pa ies o he GATT 1947 signed an ag eemen es ablishing he WTO
in which he T ade Rela ed Aspec s o In ellec ual P ope y Righ s (“TRIPS”)
became one o he h ee pilla ag eemen s wi h GATT 1994 and he GATS.
20
Al hough he TRIPS Ag eemen allowed some excep ions on non-disc imina ion
wi h espec o he numbe o in e na ional con en ions in speci ic ci cums ances,
i is possible o conside achie ing ade-o in his a ea as he eason behind he
success o he mul ila e al ade sys em.
21
Howe e , S igliz a gues ha TRIPS
should ne e ha e been pa o he WTO, because i sepa a es he de eloping and
de eloped coun ies and has made i mo e di icul o close he gap be ween hese
wo ypes o coun ies. He also main ains ha i p o ides li le p o ec ion o he IP
o de eloping coun ies.
22
Thus, inding he igh balance be ween he in e es s o
inno a o s (a lobby o pa en - holde s) and a wide public in e es (a lobby o poo

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coun ies) some imes pu s na ional go e nmen s in o a di icul posi ion, in which
hey ha e o make a decision ollowing some comp omises.
B. IPRs P o ec ion unde he WTO
The TRIPS Ag eemen de ines IPRs as “ he igh s gi en o pe sons o e he
c ea ions o hei minds,” and i dis inguishes (1) copy igh and ela ed igh s,
(2) adema ks, (3) geog aphical indica ions, (4) indus ial designs, (5) pa en s,
(6) layou designs ( opog aphies) o in eg a ed ci cui s, and (7) p o ec ion o
undisclosed in o ma ion.
23
In con as o he p e ious in e na ional con en ions,
he TRIPS Ag eemen es ablishes he minimum s anda ds o p o ec ion o he
abo e men ioned se en a eas; se s minimum s anda ds o he en o cemen o
IPRs in adminis a i e and ci il ac ions; makes he gene al dispu e se lemen
mechanism o he WTO a ailable o add ess TRIPS ela ed issues; and ex ends
basic GATT p inciples such as anspa ency, na ional ea men and mos
a ou ed na ion (“MFN”) o IPRs.
24
On he one hand, he TRIPS Ag eemen se s
he minimal s anda ds o p o ec ion, while, on he o he hand, p oblems a ise
in con ex wi h he implemen a ion o he commi men . A icle 1 o he TRIPS
Ag eemen p o ides: “… Membe s shall be ee o de e mine he app op ia e
me hod o implemen ing he p o isions o his Ag eemen wi hin hei own legal
sys em and p ac ice.”
25
The WTO membe s a e obliged o p o ide p ocedu es and
emedies unde hei domes ic law o he e ec i e en o cemen o IPRs o igh -
holde s on he p inciple o na ional ea men , which means o apply he IPRs ules
in he same way o domes ic as well as o eign subjec s.
Since 2001, he nego ia ions abou IPR ha e con inued in he ame o he
Doha De elopmen Round (“DDR”). They b ough o he changes in he TRIPS
Ag eemen ,
26
which has cu en ly esul ed in wo added amendmen s in o he
TRIPS Ag eemen . New amendmen s o he TRIPS Ag eemen , inse ed in o
he new A icle 31 bis o he Ag eemen as well as he Annex and Appendix,
p o ide he legal basis o he WTO membe s o g an special compulso y licences
exclusi ely o he p oduc ion and expo o a o dable gene ic medicines o o he
membe s ha canno domes ically p oduce he needed medicines in su icien
quan i ies o hei pa ien s.
27
Besides public heal h, ano he ask o he DDR is
geog aphical indica ions and i s egis a ion sys em. In his a ea, he nego ia ions
ha e con inued all he ime h ough he WTO TRIPS Council ha is cha ged
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China’s IP Commi men in WTO
wi h leading nego ia ions abou all IPR issues. Howe e , globaliza ion and
echnological changes would b ing new challenges o he TRIPS Ag eemen .
Fo example, he ise o elec onic comme ce di ec ed a he gene al consume
also aised issues o he p o ec ion o dis inc i e signs such as adema ks and
geog aphical indica ions. Ano he conce n is connec ed wi h he ise o ade in
digi al p oduc s.
28
Al hough he Council o TRIPS is esponsible o adminis e ing he TRIPS
Ag eemen , i does no ha e any powe o impose sanc ions o non-compliance.
Thus, he non-complying membe s can be sanc ioned only h ough he WTO
dispu e se lemen mechanism.
29
The Unde s anding on Rules and P ocedu es
Go e ning he Se lemen o Dispu es (“DSU”) is a legal base o he WTO
dispu e se lemen mechanism.
30
I se s wo king p ocedu es and a p oposed
ime able o panel wo k. F om his aspec , he DSU mechanism is “one o he
main achie emen s o he U uguay Round, p ima ily because i ended he eliance
o dispu e se lemen on he consensus p inciple ha had led o he equen non-
adop ion o decisions.”
31
Cu en ly, when a esponden coun y in he dispu e
is i s ‘lose ,’ i mus adop he decision o he WTO panel o Appella e Body.
O he wise, compensa ion and he suspension o concessions a e applied in
compliance wi h A icle 22 o he DSU.
III. chIna’s IP s unde he W o:
commI men s and comPlIance
When China acceded o he WTO in 2001, i had al eady pa icipa ed in he
TRIPS nego ia ions du ing he U uguay Round and had ini ialled he Final Ac .
In addi ion, China has al eady been a WIPO membe since 1980. In he 1990s,
China also signed di e en IPR con en ions, such as he Mad id Ag eemen
conce ning he In e na ional Regis a ion o Ma ks (1989), he Be ne Con en ion
o he P o ec ion o Li e a y and A is ic Wo ks (1992), he Uni e sal Copy igh
Con en ion (1992), he Pa en Coope a ion T ea y (1994), he Budapes T ea y on
he In e na ional Recogni ion o he Deposi o Mic oo ganisms o he Pu poses
o Pa en P ocedu e (1995), he Loca no Ag eemen Es ablishing an In e na ional
Classi ica ion o Indus ial Designs (1996), e c.
32
The es ablishmen o he
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mode n Chinese IPRs sys em was necessi a ed by he opening up o he Chinese
economy in he la e 1970s, which needed o a ac FDI and ul il he obliga ion
s ipula ed in he bila e al ag eemen s be ween he Chinese go e nmen and o eign
go e nmen s on coope a ion in science and echnology.
33
Du ing China’s accession p ocess o he WTO, he Wo king Pa y explo ed
he compliance o China’s legal sys em wi h he TRIPS Ag eemen . In addi ion,
du ing he bila e al nego ia ions wi h some WTO membe s, China ag eed o go
some way beyond he equi emen s o he TRIPS Ag eemen .
34
When China
joined he WTO in 2001, i equi ed he Chinese go e nmen o make changes o
hund eds o laws, egula ions and o he measu es a ec ing ade and in es men .
35
In o de o ul il he compa ibili y o China’s IPR laws wi h he TRIPS Ag eemen ,
China is especially obliged o:
1. ensu e he na ional and MFN ea men o o eign igh holde s ega ding all
IPRs;
2. amend i s copy igh laws o cla i y he paymen sys em by b oadcas ing
o ganiza ions which use he eco ding p oduc s and include p o isions in en al
igh s in espec o compu e p og ams and mo ies, mechanical pe o mance
igh s, he igh s o communica ion o he public, he p o ec ion o da abase
compila ions, p o isional measu es, inc easing he legi ima e compensa ion
amoun and s eng hening he measu es agains in inging ac i i ies;
3. amend he adema k law o include a speci ic p o ision on he p o ec ion o
geog aphical indica ions;
4. insu e he p o ec ion o domes ic ex ile design by China’s P o isions on he
Implemen a ion o he In e na ional Copy igh T ea y as wo ks o applied a ;
5. modi y he Pa en Law o ensu e imp o emen s in he p o isions ega ding
compulso y licensing o pa en s and he cla i ica ion o he subjec ma e ha
would be subjec o compulso y licensing;
6. ensu e e ec i e p o ec ion agains an un ai comme cial use o undisclosed es
o o he da a submi ed o au ho i ies in China;
7. ensu e ha China’s legal en i onmen would be able o mee he equi emen s
o en o cing he TRIPS Ag eemen ;
8. adequa ely compensa e he damages paid by he in inge o he igh holde ;
9. impose su icien sanc ions by adminis a i e au ho i ies o p e en o de e
u he in ingemen ; and
10. conside he mone a y h esholds o b inging a c iminal ac ion o be able
o add ess pi acy and coun e ei ing in o de o lead c iminal p ocedu e mo e
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China’s IP Commi men in WTO
e ec i ely.36
China has commi ed o abide ully by he ules o he TRIPS Ag eemen om
he da e o i s accession o he WTO.
37
No excep ions om he applica ion o
he TRIPS Ag eemen , no e en a ansi i e pe iod o he implemen a ion o
obliga ions, we e nego ia ed among China and he WTO membe s.
IV. chIna’s comPlIance WI h he IPs
ag eemen
A. Theo e ical Aspec s o Assessing he Compliance
The concep o compliance is equen ly used by poli ical scien is s in he ield o
in e na ional ela ions. Mo e han he concep o compliance, howe e , i should
be named “ he concep o implemen a ion” wi h espec o ope a ionalizing
compliance.
38
The model makes a s anda d assump ion abou go e nmen
beha iou . In gene al, i is assumed ha s a es a e a ional and ac in hei
own sel -in e es , and ha hey a e awa e o he impac o in e na ional law on
beha iou .
39
The iola ion o in e na ional law is no wi hou cos . The i s ype o
cos is sanc ions, which o he s a es may choose o impose when a gi en coun y
iola es in e na ional law, o does no ul il i s con ac ual obliga ions. Sanc ions
can ha e he o m o economic o poli ical measu e. Howe e , using sanc ions is
usually no an op imal solu ion o his p oblem. I o en leads o escala ing ension
among coun ies, because e e y ac ion causes addi ional social cos s in he o m o
e alia o y measu es o in o he wo ds “ ecip oci y in sanc ions.” This idea is also
exp essed in he manage ial heo y o compliance ha ejec s sanc ions and o he
o ms o ‘ha d’ en o cemen in a ou o he collec i e managemen o (non)-
pe o mance.
40
The second ype o cos o iola ing an in e na ional obliga ion is epu a ion.
I a coun y iola es in e na ional law, o he s a es may e use o en e in o u u e
ag eemen s, demand g ea e concessions when en e ing in o such ag eemen s, o
lose ai h in he s eng h o exis ing ag eemen s.
41
In he WTO, he ‘bad’ epu a ion
o a Membe S a e is documen ed by i s un ai ade p ac ices, he iola ion o
gene al WTO p inciples and ules o he non- ul ilmen o speci ic commi men s
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many IPRs ules.
77
This s a emen is con i med by he in e na ional compa ison.
China was in he 62nd among 138 coun ies in IP p o ec ion wi h a sco e o 4.3
poin s, whe e he scale is in he ange om 1 o 7 (7 is he bes ). Al hough he
Chinese au ho i ies imp o ed i s IPRs egula o y amewo k and amended i s IPRs
laws and egula ions in o de o comply wi h i s commi men s in he WTO and
o he in e na ional o ganiza ions o con en ions,
he en o cemen o IPR con inues
would be s ill a majo challenge o China.
V. chIna’s IP s P o ec Ion unde he W o
dIsPu e se lemen mechanIsm
Al hough many WTO membe s doub China’s compliance wi h he TRIPS
Ag eemen and he ul ilmen o i s IPRs commi men s in he WTO, he e was only
one case o China o be he subjec o he WTO dispu e se lemen mechanism
o i s IPRs in ingemen . Tha is he China - Measu es A ec ing he P o ec ion
and En o cemen o In ellec ual P ope y Righ s case (DS362) be ween he US
and China. Se e al o he WTO membe s also eques ed o join he consul a ion as
he hi d pa ies o his dispu e.
78
The WTO’s Dispu e Se lemen Body (“DSB”)
ecei ed a eques o consul a ion om he US ep esen a i es on Ap il 10, 2007.
The dispu e conce ned measu es a ec ing he p o ec ion and en o cemen o IPRs,
namely, A icles 9, 41, 46, 59 and 61 o he TRIPS Ag eemen .
79
The WTO panel ound ha A icle 61 o he TRIPS Ag eemen (bo de
measu es – emedies) was no dis up ed and concluded ha he ac ual e idence
p esen ed by he US was inadequa e o show whe he o no he cases excluded
om c iminal liabili y me he TRIPS s anda d o ‘comme cial scale’ when ha
s anda d was applied o China's ma ke place.
80
The o he wo a eas o dispu e we e
ound by he WTO’s panel o be inconsis en wi h he p o isions o he TRIPS
Ag eemen . In he i s case, he panel concluded ha he way in which China's
cus oms auc ioned he goods was inconsis en wi h A icle 59 o he TRIPS
Ag eemen .
81
In he second case, ela ed o he TRIPS Ag eemen as well as he
Be ne Con en ion, he panel concluded ha China's ailu e o p o ec copy igh in
p ohibi ed wo ks was inconsis en wi h A icle 5(1) o he Be ne Con en ion as
inco po a ed in A icle 9.1 o he TRIPS, so ha he copy igh in such p ohibi ed

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China’s IP Commi men in WTO
wo ks could no be en o ced.
82
The DSB adop ed a panel epo a i s mee ing
on Ma ch 20, 2009. In June 2009, China and he US in o med he DSB ha he
easonable pe iod o ime o China o implemen he DSB ecommenda ions
and ulings would be 12 mon hs om he adop ion o he epo .
83
Al hough he
Chinese ep esen a i es s a ed ha China had comple ed all necessa y domes ic
legisla i e p ocedu es o implemen ing he DSB ecommenda ions and ulings, in
Janua y 2017, he US ep esen a i es again claimed ha China did no appeal he
WTO panel ulings in a ou o he US and subsequen ly modi ied he measu es a
issue.
84
A icle 22 o he DSU p o ides:
I he losing Membe ails o b ing i s measu e in o con o mi y wi h i s WTO
obliga ions wi hin a easonable pe iod o ime, he p e ailing complainan is
en i led o eso o empo a y measu es, which can be ei he compensa ion o
he suspension o WTO obliga ions (A . 22.1). I no sa is ac o y compensa ion
has been ag eed wi hin 20 days a e he da e o expi y o he easonable pe iod
o ime, any pa y ha ing in oked he dispu e se lemen p ocedu es may eques
au ho iza ion om he DSB o suspend he applica ion o he Membe conce ned
o concessions o o he obliga ions unde he co e ed ag eemen s (A . 22.2).
This case demons a es ha despi e all he posi i es, which a e connec ed wi h
he TRIPS Ag eemen , i is ex emely di icul o sol e IPRs dispu es h ough he
WTO’s dispu e se lemen mechanism. Those di icul ies a e due o he ollowing
ac o s. Fi s , i is di icul o collec a clea e idence o sys ema ic non-compliance
wi h he TRIPS Ag eemen . Ac ually, IPRs dispu es a e small pa o he o al
ade dispu es in he WTO. Second, he ul ilmen o he WTO’s commi men s as
well as he DSB ecommenda ions and ulings a e demanding ime wi h uns eady
esul s. I some o m o sanc ion is applied o China, i can cause e alia ion and
escala e ension among all sides o he dispu e.
As men ioned abo e, China’s membe ship in he WTO does no mean ha he
commi men s which China accep ed du ing i s accession p ocess a e au oma ically
ul illed. As has been said, on he one hand, China is o en c i icized o mal-
en o cemen o IPRs. I is s ill weak a e 15 yea s o i s membe ship in he WTO.
On he o he hand, he WTO Sec e a ia and o he s app ecia e China’s p og ess
ela ing o IPRs. One o he main ques ions is why China should u he imp o e
he en o cemen o IPRs laws. This ques ion may ha e se e al answe s. Fi s , he
Chinese au ho i ies would inally ealize he impo ance o IPRs p o ec ion o
Lenka Foj íko á
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u he economic de elopmen o China.
85
Second, non-compliance means o be a
subjec o he compensa ion and suspension o concessions. In addi ion, China’s
widesp ead coun e ei ing no only does ha ms he business in e es s o igh -
holde s, bo h o eign and domes ic, bu also includes many p oduc s ha pose a
di ec h ea o he heal h and sa e y o consume s,
86
which in luences China’s
epu a ion in he wo ld.
In he pas , China’s economic ‘mi acle’ was based on he package o economic
e o ms ollowing he open doo policy. FDI exploded a e 1992 and, wi hin
a ew yea s, become he p edominan sou ce o echnology in lows in o China.
Also, mul ina ional co po a ions (“MNCs”) became key playe s ans e ing
echnology in o China, o no only hei a emp s o access he domes ic ma ke ,
bu also hei speed including China in o global p oduc ion ne wo ks o high-
echnology p oduc s. Chinese economic policymake s we e inc easingly willing
o p o ide ma ke access and p omises o p o ec ion o IPRs o o eign MNCs i
hey we e willing o ans e p oduc ion o China.
87
In o he wo ds, he eloca ion
o he p oduc ion om de eloped coun ies, such as he US, Japan, he UK, e c.
o China was also ollowed by a ans e o echnology. Thus, he p oduce s om
de eloped coun ies go addi ional gains om he lowe p oduc ion cos s and
he Chinese go e nmen go an easie access o new echnological p og esses.
Howe e , he cu en si ua ion is di e en . Besides being in he hi d posi ion o
he op hos economies wi h FDI in lows o USD 134 billion in 2016, China was
also in he second posi ion o op home economies wi h FDI ou lows o USD
183 billion in he same yea .
88
This means ha while a he end o he 20 h cen u y
China was he main des ina ion o o eign di ec in es men in lows om he
whole wo ld, a he beginning o he wen y- i s cen u y China has also became
one o he leading in es o s in he wo ld. In 1994, China’s in es men in esea ch
and de elopmen (“R&D”) was below 0.6 pe cen o GDP,
89
bu oday’s g oss
domes ic R&D spending is 2.05 pe cen o GDP which is highe han ha o he
UK and Canada.
90
Al hough China has been a middle-income economy all he
ime, i holds he 22nd posi ion among 127 economies in he Global Inno a ion
Index in 2017. The e, China has a be e posi ion han Aus alia, Belgium, I aly
and some o he highe -income coun ies.
91
China has become mo e compe i i e in
many economic sec o s because o i s own inno a ion and esea ch.
92
In he pas ,
he p o ec ion o IPRs was essen ial o ensu ing he con inued in lows o FDI
24
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China’s IP Commi men in WTO
and he associa ed ans e o newly de eloped echnologies, as well as os e ing
he de elopmen o new echnologies and se ices in China. Cu en ly, howe e ,
he Chinese au ho i ies ealise ha he s eng hening o IPRs p o ec ion is also
impo an o i s domes ic inno a o s and IP holde s. On he whole, China’s
compliance wi h he TRIPS Ag eemen has a posi i e in luence on he o eign as
well as domes ic owne s o IPR who wan s able en i onmen o doing business
in China.
Table 1 shows a g owing numbe o applican s o pa en s, adema ks and
indus ial design in China du ing 2001−15. While he highes numbe o ilings was
eco ded in adema k, bo h in he beginning as well as a he end o he moni o ed
pe iod, he highes inc ease o ilings was eco ded in pa en s. Especially, pa en s
applied by esiden s inc eased he mos ; i was mo e han 32- old. The highes
numbe o pa en applica ions co e ed digi al communica ion, elec ical machine y,
appa a us, ene gy, compu e echnology, and o he ields o echnology.
93
A
posi i e co ela ion be ween pa en applica ions ( esiden s as well as non- esiden s)
and pa en ilings is also ob ious. This indica es imp o ing he sys em o IPRs
managemen in China. Howe e , he igh s-holde s in China equen ly ha e hei
IP igh s in inged. Mo e conc e ely, abou 1.3 pe cen o seizu es o coun e ei
and pi a ed goods conce ns iola ions o he IP igh s o Chinese companies.
94
I indica es a e y s ong h ea o coun e ei ing and pi acy ha unde mines he
inno a i e e o s o Chinese companies elying on knowledge-based capi al and
using IPRs in hei business s a egies. In addi ion, coun e ei ing goods causes
inancial loss o bo h he Chinese go e nmen and he IPRs holde s.
95
Table 1: The Numbe o Pa en s, T adema ks and Indus ial Designs in 2001-2015
96
2001 2005 2010 2015
Pa en :
- Applican s (Residen ) 30,038 93,485 293,066 968,252
- Applican s
(Non- esiden )
33,412 79,842 98,111 133,612
- Filings 31,232 97,948 308,326 1,010,448
T adema k
- Filings 238,301 630,346 1,054,465 2,146,666*
Indus ial Design
- Filings 56,748 155,236 421,418 589,571
* Da a a ailable un il 2014.
26
Lenka Foj íko á
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The TRIPS Ag eemen has been implemen ed in China om bo h mic o and
mac o-economic poin o iew. This b ings gains o business (companies)
and he economic g ow h o he whole coun y. In o he wo ds, he e ec i e
en o cemen o IPRs in China b ings a highe con idence o domes ic as well
as o eign in es o s and pa en -holde s, which a e he sou ce o new p oduc ions
and jobs in China. Then, he economic g ow h c ea es he op imal assump ions
o achie ing poli ical goals and s abili y in he coun y. In he 13 h Fi e-Yea
Plan, which was app o ed in Oc obe 2015, Chinese policymake s conside ed
inno a ions as he main d i e o economic g ow h.
97
In o de o enhance China’s
capabili y o p o ec ing IP, in June 2008, he S a e Council issued he Ou line o
he Na ional In ellec ual P ope y S a egy. The Ou line iden i ies he s a egic
goal o China becoming, by 2020, a coun y wi h a compa a i ely high le el in
e ms o he c ea ion, u iliza ion, p o ec ion and adminis a ion o IPRs. In Janua y
2015, he S a e Council issued an ac ion plan on he u he implemen a ion o
IPRs s a egy, highligh ing he goals and measu es o IPRs om 2014 o 2020.
98
The compliance o China wi h he TRIPS Ag eemen is also connec ed wi h
China’s epu a ion among he o he 163 WTO membe s as well as hei bila e al
ade pa ne s. China is cu en ly he leading p oduce o manu ac u ing goods
in he wo ld, so ha i needs o coope a e (expo as well as impo ) wi h o he
coun ies a ound he wo ld. In gene al, he p o ec ion o IPRs p oduces mo e
s abili y and anspa ency in business. On he o he hand, howe e , he expe ience
o some p oduce s and expo e s shows ha coun e ei ing and pi acy ha e
become a ‘mo o ’ o inno a ion-d i en economies. They coun on he possibili y
o he copy o hei p oduc s in ad ance, so ha hey inno a e hei p oduc ion all
he ime. In gene al, o be mo e compe i i e in he wo ld ma ke , i is necessa y o
p oduce s o jump one s ep u he .
VI. conclusIon and ecommenda Ions
This a icle has shown ha al hough he p o ec ion o IPRs in China has become
one o he u gen p io i ies o he Chinese go e nmen in ecen , China is s ill he
la ges p oducing economy o coun e ei goods in he wo ld.
99
How e ec i ely
did China abso b he TRIPS obliga ions in o i s legal sys em a e joining he
27
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China’s IP Commi men in WTO
WTO? Ac ually, China enac ed domes ic IP laws in acco dance wi h he TRIPS
Ag eemen and amended he Pa en Law, he Copy igh Law, he T adema k
Law and IP egula ions. Howe e , some issues ha e emained unsol ed un il
now, which has in luenced on he in es men and business in China o bo h
esiden s and non- esiden s. Today, he e ec i e en o cemen o IPRs in China is
he poin a issue. I is based on he subjec i e assessmen s o o he s akeholde s
wi h espec o he WTO ag eemen s and ules, which a e ocused mo e on he
implemen a ion o IPRs commi men s han hei en o cemen .
The WTO can posi i ely make con ibu ion o en o cing IP laws (o
compliance wi h he TRIPS Ag eemen ), especially h ough he Council o
TRIPS and he Dispu e Se lemen Body. Howe e , he e ec i e solu ion o IPRs
dispu es in he WTO has no been wholly con i med in his a icle. In addi ion,
while assessing China’s compliance, i is necessa y o emembe ha he TRIPS
Ag eemen es ablishes minimum s anda ds and he ‘ lexibili y’ o e ed o all WTO
membe s in in e p e ing a ious a icles o he ag eemen makes he assessmen o
compliance mo e p oblema ic. E en ually, he assessmen o China’s compliance
wi h he TRIPS Ag eemen should include bo h he in en ion and willingness o
he Chinese policymake s o comply, and he capaci y o do i . This is in luenced
by no only coun y speci ic ac o s (e.g., geog aphical ea u e, his o ical
backg ound, poli ical and economic sys em, echnological le el), bu also non-
coun y speci ic ac o s (e.g., u he nego ia ions in he WTO, he imp o emen
o he WTO dispu e se lemen mechanism, and he ole o MNCs in China).
China’s willingness and in en ion o imp o e IPRs p o ec ion we e documen ed
a e 2001. Howe e , in addi ion o enac ing new laws and egula ions and
o mula ing de elopmen plans and s a egies, a wide coope a ion wi h o he
WTO membe s and in e na ional o ganiza ions should be necessa y. In his sense,
China’s policymake s a e ecommended o u ilize he ac i i y o he MNCs in a
common endea ou o igh agains coun e ei ing and pi acy in China. Thus, o
he capaci y o comply wi h he TRIPS commi men s, hey should conside no
only he amoun o e o s o he p o ec ion o IPRs, bu he e ec i eness and he
quali y o human sou ces.
IPR p o ec ion is indispensable o o eign in es o s as well as IPRs holde s
o do business in China. Howe e , China also needs an e ec i e sys em o IPRs
o se e al easons. Fi s , o eign in es o s and hei new echnologies ha e

Lenka Foj íko á
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played an impo an ole in de eloping China’s indus y all he ime. Second, he
Chinese go e nmen suppo s i s own inno a o s and c ea o s. F om his poin
o iew, China’s go e nmen also has an in e es o p o ec China’s esea ch and
inno a ion. Thi d, coun e ei and pi acy cause ax and cus oms losses. Las ly,
hese will damage China’s epu a ion in he global socie y.
China has eco ded posi i e p og ess in he a ea o IPRs du ing he las 15
yea s, bu sho comings s ill emain in he en o cemen o IPRs laws in China,
especially on he local le el. Howe e , he highe he economic le el o a coun y
is, he highe he necessi y and s ess on he p o ec ion o IPR is pu . Two and a
hal cen u ies ago, as -g owing na ions, such as he US and o he wes e n powe s,
whose capi alism as we know i oday was s ill e y much in i s in ancy, we e
a ho bed o li e a y pi acy. In compa ison wi h he US and wes e n coun ies,
up un il he ea ly nine een h cen u y, China e ained i s p e-eminen posi ion in
he wo ld economy. I was he majo p oduce o s eel, he leade in echnical
inno a ions in ex ile manu ac u ing in he wo ld, he sou ce o new inno a ions
in he p oduc ion o pape , book p in ing and he leading ade na ion. A his
ime, B i ish and Eu opean manu ac u es ollowed China’s lead, assimila ing
and bo owing i s mo e ad anced echnology, and we e eage o gain en ance o
China’s ad anced and luc a i e ma ke . In a simila way, 40 yea s ago, Japan was
one o he bigges pa en in inge s, bu , in he 1990s, i changed in o an expo e
o new ideas and now becomes he hi d bigges pa en ille in he wo ld.
100
These mo e o less dis an his o ical e en s show ha he p o ec ion o in ellec ual
p ope y is ela ed o a coun y’s economic de elopmen . China is simila he
US, Japan and B i ain o he pas .
101
Accep ing he TRIPS Ag eemen China can
demons a e i s desi e o be an inno a o , no a copie .
eFe ences
1. A. MAdisson, Chinese eConoMiC Pe o MAnCe in he Long un (OECD 2007), a ailable a
h p://pike y.pse.ens. / iles/Maddison07.pd (las isi ed on Jan. 24, 2018).
2. Z. Xie, The Rise o China and I s G owing Role in In e na ional O ganiza ions, 4(1)
ICCS J. Mod. Chinese s ud. 85-96 (2011), a ailable a h p://iccs.aichi-u.ac.jp/a chi es/
epo /038/5099 0477e37a.pd (las isi ed on Jan. 7, 2018).
3. Global Resea ch, China - Rise, Fall and Re-Eme gence as a Global Powe . The Lessons o
28
CWR
China’s IP Commi men in WTO
His o y (May 17, 2017), a ailable a h ps://www.global esea ch.ca/china- ise- all-and- e-
eme gence-as-a-global-powe /29644 (las isi ed on Jan. 24 2018).
4. F. Ismail, The Changing Global T ade A chi ec u e: Implica ions o A ica’s Regional
In eg a ion and De elopmen , 51(1) J. Wo Ld Ade 1-22 (2017).
5. WTO, S a is ical Table (2016), a ailable a h ps://www.w o.o g/english/ es_e/s a is_e/
w s2016_e/w s16_chap9_e.h m (las isi ed on Jan. 24, 2018).
6. Id.
7. CIA, The Wo ld Fac book: China (June 21, 2017), a ailable a h ps://www.cia.go /lib a y/
publica ions/ he-wo ld- ac book/geos/ch.h ml (las isi ed on Jan. 24, 2017).
8. Sup a no e 2.
9. See Chinas yuan joins eli e club o IMF ese e cu encies, eu e s, Oc . 1, 2016, a ailable
a h p://www. eu e s.com/a icle/us-china-cu ency-im -idUSKCN1212WC (las isi ed on
Jan. 24, 2018).
10. See, e.g., Ismail, sup a no e 4. He s a es ha China’s ise has c ea ed bo h oppo uni ies and
challenges o A ican coun ies. The ise o China has c ea ed an oppo uni y o A ica
o di e si y i s expo s and also o expo i s commodi ies a highe p ices in o he Chinese
ma ke . In addi ion, China’s S a e Owned En e p ises ha e begun o in es in in as uc u e
in A ican coun ies, such as ene gy, oad and ail anspo , po de elopmen and logis ic.
See also L. Foj íko á, China's Ex e nal T ade a e I s En ance in o he WTO wi h
he Impac on he EU, in P oceedings o he 1s In e na ional Con e ence on Eu opean
In eg a ion 56-65 (2012), a ailable a h ps://www.ek . sb.cz/expo /si es/ek /icei/.con en /
gale ie-dokumen u/ICEI-2012-Sbo nik.pd (las isi ed on Jan. 24, 2018). I s a es ha
ex e nal ade has emained he main mo o o he Chinese economy a e i s en ance in o
he WTO. While China’s membe ship in he WTO con ibu ed o he g ow h o China’s
ma ke sha e, i had a nega i e in luence on some EU expo e s, especially Ge many,
F ance and he UK.
11. The US sha e eached only 13.7 % and he Japanese, 8.0 %. See eu oPeAn CoMMission,
Ade As A d i e o P osPe i y. CoMMission s A Wo king doCuMen ACCoMPAnying he
CoMMission’s CoMMuniCA ion on “ Ade, g oW h And Wo Ld A Ai s” (2010), a ailable
a h p:// ade.ec.eu opa.eu/doclib/docs/2010/no embe / adoc_146940.pd (las isi ed on
Jan. 24, 2018).
12. The Wo ld Bank, High- echnology expo s (cu en US$) (2017), a ailable a h p://da a.
wo ldbank.o g/indica o /TX.VAL.TECH.CD? iew=cha (las isi ed on Jan. 24, 2018).
13. China was one o he 23 o iginal con ac ing pa ies in he GATT in 1947. In connec ion
wi h China’s e olu ion in 1949, howe e , he Chinese go e nmen did no pa icipa ed in
he c ea ion o a mul ila e al ade sys em go e ned by he GATT o almos 40 yea s. In
1986, he Chinese go e nmen no i ied he GATT o i s in e es in esuming i s s a us as a
GATT con ac ing pa y and a Wo king Pa y o examine China’s s a us was es ablished
in Ma ch 1987. In connec ion wi h he es ablishmen o he WTO in 1995, he GATT
Wo king Pa y was con e ed in o he WTO Wo king Pa y on he accession o China.
Nego ia ions con inued simul aneously on he bila e al and mul ila e al le el. See L.
Foj íko á, China a e 15 Yea s in he WTO: Wha Role Does he Chinese S a e Play?, in
en e P ise And CoMPe i i e en i onMen (S. K ů ilo á eds., 2017), P oceedings o he
29
30
Lenka Foj íko á
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20 h Annual In e na ional Con e ence o Mendel Uni e si y in B no, a 241-50, a ailable
a h ps://ece.pe ka.mendelu.cz/si es/de aul / iles/imce/ECE2017_ in.pd (las isi ed on
Jan. 24, 2018).
14. B. hoekMAn & M. kos eCki, he PoLi iCAL eConoMy o he Wo Ld Ading sys eM:
oM gA o W o 144 (1995).
15. J. S igli z, Economic Founda ions o In ellec ual P ope y Righ s, 57 duke L. J.
1693-24 (2008), a ailable a h p://schola ship.law.duke.edu/cgi/ iewcon en .
cgi?a icle=1362&con ex =dlj (las isi ed on Jan. 24, 2018).
16. hoekMAn & kos eCki, sup a no e 14.
17. The exis ing con en ions did no con ain especially a binding, e ec i e mul ila e al
dispu e-se lemen mechanism, which was needed o deal wi h IP ela ed issues. See k.
hoMAs, Assessing in eLLeC uAL P oPe y CoMPLiAnCe in Con eMPo A y ChinA 44 (2017).
18. hoekMAn & kos eCki, sup a no e 14.
19. Id.
20. The TRIPS Ag eemen is Annex 1C o he Ma akesh Ag eemen Es ablishing he WTO,
signed on Ap il 15, 1994. The TRIPS Ag eemen was amended h ough he P o ocol o 6
Decembe 2005 ha en e ed in o o ce on 23 Janua y 2017. See WTO, Amended TRIPS
Ag eemen (Jan. 23, 2017), a ailable a h ps://www.w o.o g/english/docs_e/legal_
e/31bis_ ips_01_e.h m (las isi ed on Jan. 24, 2018).
21. hoMAs, sup a no e 17.
22. S igli z, sup a no e 15.
23. TRIPS Ag eemen p . II, §§ 1-7.
24. hoekMAn & kos eCki, sup a no e 14.
25. TRIPS Ag eemen a . 1(1).
26. The agenda o he DDR is co e ing all pa s o in e na ional ade, such as goods,
comme cial se ices, IPRs and o he ade ela ed opics. Howe e , only a pa ial success
in ade nego ia ions has been eco ded un il now, al hough he inal decision o he DDA
has no been eached ye . See WTO, The Doha Round (No . 2001), a ailable a h ps://
www.w o.o g/english/ a op_e/dda_e/dda_e.h m (las isi ed on Jan. 24, 2018).
27. TRIPS Ag eemen a . 31 bis, Annex & Index.
28. Fo de ails, see M. Bu i & . Co ie , Ade go e nAnCe in he digi AL Age 305-6
(2015).
29. hoMAs, sup a no e 17.
30. WTO, The Unde s anding on Rules and P ocedu es Go e ning he Se lemen o Dispu es
(“DSU”): Annex 2 o he WTO ag eemen , a ailable a h ps://www.w o.o g/english/
a op_e/dispu_e/dsu_e.h m (las isi ed on Jan. 24, 2018).
31. Howe e , on he o he hand, se e al issues ha e a isen om he ope a ion o he DSU. See
n. Pe dikis & . eAd, he W o And he eguLA ion o in e nA ionAL Ade. eCen
Ade disPu es Be Ween he eu oPeAn union And he uni ed s A es (2005).
32. T ade Policy Re iew - China, WTO Doc. WT/TPR/S/342/Re . 1 (adop ed Oc . 12, 2016),
a ailable a h ps://www.w o.o g/english/ a op_e/ p _e/ p442_e.h m (las isi ed on Jan.
24, 2018).
33. C. Huang, Recen De elopmen o he In ellec ual P ope y Righ s Sys em in China
31
CWR
China’s IP Commi men in WTO
and Challenges Ahead, 13 MgM . & o g. e . 39-48 (2017), a ailable a h ps://
www.camb idge.o g/co e/jou nals/managemen -and-o ganiza ion- e iew/a icle/di -
class i le ecen -de elopmen -o - he-in ellec ual-p ope y- igh s-sys em-in-china-and-
challenges-aheaddi /B4D5848771D2D89A2A8A0620E75B2763 (las isi ed on Jan. 24,
2018).
34. A p ac ical case o his kind is he bila e al nego ia ions be ween he EU and China. The
EU o mally suppo ed China’s en y o he WTO, because many comp omise solu ions
we e announced by China du ing he EU-China nego ia ions. See Eu opean Commission,
O e iew o he Te ms o China’s Accession o WTO, a ailable a h p:// ade.ec.eu opa.
eu/doclib/docs/2003/oc obe / adoc_111955.pd (las isi ed on Jan. 24, 2018).
35. USTR, 2016 Repo o Cong ess on China’s WTO Compliance (Jan. 2017), a ailable a
h ps://us .go /si es/de aul / iles/2016-China-Repo - o-Cong ess.pd (las isi ed on Jan.
24, 2018).
36. Fo de ails on all China’s commi men s, see Wo king Pa y Repo (WT/ACC/CH/49/
Add.1) & P o ocol on Accession o China (WT/L/432).
37. Accession o he People’s Republic o China (Decision o 10 No embe 2001), WTO Doc.
WT/L/432 (adop ed No . 23, 2001), a ailable a h ps://www.w o.o g/english/ hew o_e/
acc_e/a1_chine_e.h m (las isi ed on Jan. 24, 2017).
38. hoMAs, sup a no e 17.
39. A. Guzman, A Compliance-Based Theo y o In e na ional Law, 90 CALi . L. e . 1823-87
(2002).
40. A. ChAyes & A. ChAyes, he neW so e eign y, CoMPLiAnCe Wi h in e nA ionAL
eguLA o y Ag eeMen s (1995).
41. Guzman, sup a no e 39.
42. Howe e , he coun y’s sha e in wo ld ade should also be conside ed. The leading wo ld
expo e s and impo e s a e usually pa icipan s o ade dispu es mo e o en.
43. L. henkin, hoW nA ions BehA e: LAW And o eign PoLiCy 50 (2d ed. 1979).
44. s. PAni ChPAkdi & M. CLi o d, ChinA And he W o 144 (2002).
45. ChAyes & ChAyes, sup a no e 40.
46. hoMAs, sup a no e 17.
47. T ade Policy Re iew - China, WTO Doc. WT/TPR/S/264 (adop ed June 14, 2012),
a ailable a h ps://www.w o.o g/english/ a op_e/ p _e/ p364_e.h m (las isi ed on Jan.
24, 2018).
48. The S a e Council is he highes execu i e o gan in China.
49. The adminis a i e bodies unde he S a e Council is composed o such bodies as he
S a e Council, he S a e In ellec ual P ope y O ice, he S a e Adminis a ion o Indus y
and Comme ce, he Adminis a ion o Quali y Supe ision, Inspec ion & Qua an ine, he
Minis y o Ag icul u e, he S a e Copy igh O ice, he Cus oms, he Public Secu i y and
P ocu a o a e and he S a e O ice o IPR, and he Minis y o Comme ce. See WTO, sup a
no e 47. This sou ce e iews he Chinese ade policy, including IPRs and explains he
adminis a i e s uc u e o IPRs p o ec ion in China.
50. Foj íko á, sup a no e 13.
51. Eu opean Commission, Commission S a Wo king Documen on Signi ican dis o ions