Although China improved its intellectual property laws after 1992, enforcement of these laws remained sporadic at best, and virtually nonexistent with regard to copyrighted works. In addition, domestic piracy in China constituted a serious barrier to the entry of U.S. companies into the Chinese market. Just as important, however, the enforcement agreement for the first time obligates China to open its markets to legitimate audiovisual products, by eliminating quotas and other market barriers. Compliance has been uneven. China has also set up much of the IPR enforcement structure required under the Agreement, and has resolved a number of IPR court cases.
Significant problems remain, however.
Similarly, progress on market access has been limited with difficulties remaining with respect to importation of U.S. products and the terms of access for U.S. companies into China. USTR has held many consultations with the Chinese government on compliance with the Agreement. China has also reduced tariffs on a number of items. Over the past year, we have continued to discuss areas where implementation needs improvement. Exports affected by the Market Access MOU include chemicals, computers, integrated circuits, medical equipment, autos and auto parts, machinery products, telecommunications equipment, instant film and instant cameras, steel products, photocopiers, beer, wine, distilled spirits and mineral waters.