U.S. Secretary of Commerce Penny Pritzker and U.S. Trade Representative Michael Froman are hosting a high-level Chinese delegation for the 25th session of the U.S. – China Joint Commission on Commerce and Trade (JCCT) in Chicago (Dec.16-18). This significant meeting comes as U.S. and Chinese officials accelerate the progress of negotiations on the bilateral investment agreement that would expand market access in China for American manufacturers.
Officials from both sides will also begin the work of implementing the historic agreements reached by President Obama and China’s President Xi at the recently concluded Asia- Pacific Economic Cooperation (APEC) leader’s summit. The U.S. – China agreements on climate change, technology tariffs, visa issuance and military cooperation are new models of a major- country relationship. These agreements show that despite internal political obstacles within both the U.S. and China, there is the will to find ways to build a productive and cooperative long-term relationship.
{mosads}As one who has worked with various Chinese entities, I have seen firsthand the benefits of clear communication and cooperation between the world’s two largest economies. The JCCT is the primary forum for addressing various bilateral issues between the United States and China, such as intellectual property rights, agriculture, pharmaceuticals and medical devices, information technology, and travel and tourism.
Expanding the U.S. – China trade relationship is critical to strengthening the U.S. economy. The economic relationship between the U.S. and China has significantly expanded over the past three decades with total trade increasing from $2 billion in 1979 to $562 billion in 2013. And now, the new U.S. – China agreement on 10 year reciprocal visas will contribute about $85 billion per year to the American economy and support 440,000 new American jobs.
Cooperation between the United States and China is vital to global stability. For example, one area in which both nations need to find ways to cooperate is patent reform. There is suspicion by American businesses and public officials that China borrows American business ideas and technologies. China is seeking to overcome its reputation for business encroachment, deserved or not. Patent reform would be a big step in the right direction.
As the Chinese economy becomes more sophisticated, there are emerging Chinese companies that clearly would benefit from patent protection. Alibaba, the largest Internet company in the world, just issued a historic Initial Public Offering (IPO) that will help set a standard for Chinese companies doing business across international economies. Geely Automotive, China’s leading automobile company, wants to compete fairly and is a leader in technology developments in the ever-growing Chinese automotive industry.
With the examples of Alibaba and Geely, other Chinese companies will see value in freely competing through IP protections that will set a new, improved and lasting standard for business competition. The domestic U.S. political bias against China will also dissipate as China’s actions enhance trust among leading public officials. Harmonious free and open trade and investment will produce regional economic integration and technical cooperation and result in an enduring business environment.
As the Chinese market with 1.3 billion people grows and becomes more sophisticated, stronger bilateral trade agreements and the reliability of intellectual property asset protection in China will further strengthen trade between the U.S. and China that improves everyone’s economy.
In 1975, U.S. President Gerald Ford assigned George H.W. Bush as envoy to China; that showed prescience in their expectations of future Chinese American relations. President Obama has continued a relationship defined by cooperation, not confrontation, as the meetings at the recently concluded APEC summit showed. The JCCT talks in Chicago between the U.S. and China could be further historic steps that will foster better relations between the two largest economies in the world.
Nethercutt served in the House from 1995 to 2005 and currently is “Of Counsel” with Lee & Hayes, the world’s leading intellectual property law firm.