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“A Great Leap in Global Governance: Is China’s
ICT Sector Ready?”
Scott KennedyDirector
Research Center for Chinese Politics & Business
Indiana [email protected]
China and Global Governance:The Typical Questions
• Does China play by the rules?• Is China meeting its commitments?• Why isn’t it meeting its commitments?• What can be done to help China meet its
commitments?• Is China an anti-status quo power?
China and Global Governance:Different Questions
• “How is China learning the rules?”• “How well does China play by the rules?”• “How well do different Chinese groups, in and
out of government, play by the rules?”• “What does greater Chinese playing mean for
the rules and the entire game of global governance?”
• Are others ready for China to play a larger role?
Types of International Economic Regimes
Regimes Designed to Serve
Producers Consumers
Global Governance Norms and Rules
Exist and Have Teeth
Trade Remedies - Antidumping - Safeguards - Countervailing measuresTechnical StandardsIntellectual Property Rights
Food SafetyProduct SafetyEnvironmentLabor Rights
Weak or Non-Existent
Foreign Exchange ValuationForeign Investment - direct - sovereign wealth funds - hedge funds
Competition PolicyCredit Risk Management
China’s Own Antidumping Regime (product-cases)
YearCasesInitiated
Chinese Applicants Win
Both Sides Win
Foreign Respondents Win
1997 1 1 0 0
1998 0 - - -
1999 4 1 3 0
2000 1 0 1 0
2001 6 4 0 2
2002 9 6 2 1
2003 6 1 4 1
2004 8 3 3 2
2005 7 1 4 2
2006 5 4 1 0
2007 1 0 1 0
Total 48 21 (44%) 19 (40%) 8 (16%)
Recent Chinese Information Technology Standards Efforts
Non-ChineseChinese standardAlternativesProduct AreaabbreviationDVDVideo players, 3rd generationVCD, CVD, SVCD1Blue-ray, HD DVDVideo players, 4th generationEVD, HVD, HDV2MPEG4, VC1Multiple audio-visual productsAVS3WCDMA, CDMA2000mobile phonesTD-SCDMA4DLNA, UOPFHome appliance networkingIGRS, ITopHome5Wi-FiWireless local area networksWAPI6EPCRadio frequency identificationRFID7IPv4Internet architectureIPv68
A Country’s Standards PyramidLicense others to make products
based on your standard
Cross-license standards access with others
Produce and sell products with IP-based standards
All standards with intellectual property
All of a country’s standards: international, national, company, local
China and Global Governance:Different Questions
• “How is China learning the rules?”• “How well does China play by the rules?”• “How well do different Chinese groups, in and
out of government, play by the rules?”• “What does greater Chinese playing mean for
the rules and the entire game of global governance?”
• Are others ready for China to play a larger role?
China’s WTO Cases: As RespondentDate
InitiatedApplicants
(case #)Issue Outcome
Mar 2004 USA (309)
Value-added tax rebate on semiconductors China voluntarily withdrew rebate
Mar 2006 EU, USA, Canada (339, 340, 342)
Auto parts tariffs July 08: Panel ruled in favor of US and other applicants. China appealing ruling.
Feb 2007 USA, Mexico (358, 359)
Unfair tax breaks and subsidies Dec 07: Two sides sign MOU.
Apr 2007 USA (362) Criminal penalties for IPR violations pending
Apr 2007 USA (363) Distribution of publications in China pending
Mar 2008 USA, EU, Canada (372, 373, 378)
Financial information services. Require foreign info companies to disclose proprietary info , use an agent to sell their services.
Nov 08: China signs MOU, voluntarily withdraws regulation, establishes new licensing system.
China’s WTO Cases: As ApplicantCase
#Date
Initiated Respondent Issue Outcome
252 Mar 02 USA Safeguard measures to stem surge in imports of foreign steel
WTO rules in favor of China and other applicants; US removed the safeguards.
368 Sept 07 USA Preliminary antidumping and counterveiling duty determinations on coated free sheet paper.
US ITC determined no injury in the relevant case. US-China consultations discontinued.
379 Sept 08 USA Definitive antidumping and counterveiling duties against circular welded steel pipes, off-road tires, and laminated woven sacks. Application of CVD to a “non-market economy.”
Consultations pending
Involvement in WTO Dispute Resolution Cases, Selected Members(January 1995 - September 2008)
Member Complainant Respondent Third Party
Brazil 23 14 49
China 3 11 62
European Union 79 62 82
Hong Kong 0 0 0
India 17 20 51
Japan 13 15 90
South Korea 13 13 43
South Africa 0 3 0
Chinese-Taipei 3 0 39
United States 90 100 73