China to raise penalties on IP theft in trade war talks

Bloomberg

China said it will raise penalties on violations of intellectual property rights (IPR) in an attempt to address one of the sticking points in trade talks with the US.
The country will also look into lowering the thresholds for criminal punishments for those who steal IP, according to guidelines issued by the government. It didn’t elaborate on what such moves might entail.
The US wants China to commit to cracking down on IP theft and stop forcing US companies to hand over their commercial secrets as a condition of doing business there. China said it’s aiming to reduce frequent IP violations by 2022 and plans to make it easier for victims of transgressions to receive compensation.
The two countries are working towards a partial trade deal and leaving the more controversial issues for later discussions. China’s chief trade negotiator spoke about its plans for reforming state enterprises, opening up the financial sector and enforcing intellectual property rights — issues at the core of US demands for change in China’s economic system.
“Strengthening IPR protection is the most important content of improving the IPR protection system and also the biggest incentive to boost China’s economic competitiveness,” according to the guidelines. Local governments will be required to implement the strengthening of IP rights, it said.
In May, the US added Huawei Technologies Co to what’s known as the entity list in an effort to block US companies from selling components to China’s largest technology company. Huawei is accused of being a threat to America’s national security, and has denied those claims.

Xi Jinping stresses equality needed in phase one deal
Chinese President Xi Jinping said his nation wants to work towards a phase one trade agreement with the US on the “basis of mutual respect and equality,” his first comments on a partial deal that he could potentially sign with US President Donald Trump.
“We didn’t initiate this trade war and this isn’t something we want,” Xi reiterated in a meeting with prominent international visitors to Beijing including former US Secretary of State Henry Kissinger.
“When necessary, we will fight back, but we have been working actively to try not to have a trade war.”
Just a few days ago, Trump said China wasn’t “stepping up to the level that I want” in the negotiations amid doubts about whether the two sides can hammer out a written agreement.
China’s chief trade negotiator, Liu He, indicated he was “cautiously optimistic” about reaching the first phase of a deal.
Liu made the comments in a speech in Beijing ahead of the New Economy Forum, which is being organised by Bloomberg Media Group. Some of the foreigners who met with Xi were also in Beijing to attend the forum.

China’s Dream
Xi emphasised that China’s overall goal wasn’t “a dream about hegemony“ but was rather “working to realise the Chinese dream of renewal” and to ensure that China was never humiliated again.
“We are just trying to restore our place and role in the world rather than reliving the humiliating days of semi-colonial and semi-feudal era,” Xi said. “In those days there were signs in Shanghai saying Chinese and dogs are not allowed inside — and we will not relive those days again.”
One of the three key demands for any trade deal with the US is that it should be “balanced” to ensure the “dignity” of both nations, indicating that this quest for respect still motivates policy.
Since Trump announced the phase one deal a month ago, markets have been whipsawed by comments from both sides, first indicating progress, and then the opposite.
The latest potential hurdle came after Liu made his dinner-time comments, when the US House voted 417-1 for legislation supporting Hong Kong protesters that has already been unanimously approved by the Senate. Xi also shed some more light on China’s plans to open up its financial markets. He said the reforms set in motion will not stop, but that the nation needs to be careful and will also ensure its “financial sovereignty.”