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Intellectual Property and Free Trade Agreements in the Asia-Pacific Region pp 247–283Cite as

Sinic Trade Agreements and China’s Global Intellectual Property Strategy

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Part of the book series: MPI Studies on Intellectual Property and Competition Law ((MSIP,volume 24))

Abstract

This chapter closely examines the bilateral and regional trade agreements established by China, which are termed ‘Sinic trade agreements’ (STAs). It discusses China’s growing engagement with the developing world, the underlying goals of STAs and the negotiation strategies behind these agreements. Using the China–New Zealand Free Trade Agreement (CNZFTA) as an illustration, this chapter then points out that the STAs negotiated thus far provide only very limited coverage of intellectual property issues. It further explores why China has kept a low profile in the international intellectual property arena. The chapter concludes by discussing the future ramifications of STAs.

P.K. Yu: Kern Family Chair in Intellectual Property Law and Director, Intellectual Property Law Center, Drake University Law School; Wenlan Scholar Chair Professor, Zhongnan University of Economics and Law, China; Visiting Professor of Law, Faculty of Law, University of Hong Kong.

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Notes

  1. 1.

    Yu (2007b), p. 828.

  2. 2.

    In Asia, for example, China, India, and Japan have all been active in developing bilateral, plurilateral, and regional trade agreements.

  3. 3.

    This term is intentionally chosen to facilitate comparison with FTAs. To a great extent, STAs can be described as FTAs ‘with Chinese characteristics’. However, this chapter avoids the term for two reasons. First, like ‘China free trade agreements’, such a term would retain the loaded nature of the term ‘FTAs’. Second, in the past two decades, people have stretched the descriptor ‘with Chinese characteristics’ considerably to cover unique arrangements in China. The term has been used so often and so broadly that it no longer has any clear or identifiable meaning. Virtually anything from China can now be described as having Chinese characteristics.

  4. 4.

    The texts of this Agreement and other STAs are available in English at http://fta.mofcom.gov.cn/english/index.shtml.

  5. 5.

    Guttal (2008), p. 22.

  6. 6.

    Zhang and Tang (2006), pp. 54–55.

  7. 7.

    Kang (2007), p. 130.

  8. 8.

    Chile (signed 18 November 2005, entered into force 1 October 2006), Pakistan (signed 24 November 2006, entered into force 10 October 2009), New Zealand (signed 7 April 2008, entered into force 1 October 2008), Singapore (signed 23 October 2008, entered into force 1 January 2009), Peru (signed 28 April 2009, entered into force 1 March 2010), Costa Rica (signed 8 April 2010, entered into force 1 August 2011), Iceland (signed 15 April 2013, entered into force 1 July 2014) and Switzerland (signed 6 July 2013, entered into force 1 July 2014).

  9. 9.

    Yardley (2008).

  10. 10.

    Lal (2007), p. 140. All the figures in this chapter will be listed in US currency and terminology (e.g. billion).

  11. 11.

    Economic Times (2012).

  12. 12.

    Sutter (2005), p. 255.

  13. 13.

    Eisenman (2007), p. 35.

  14. 14.

    Xu (2008), p. 69.

  15. 15.

    Alden (2008b), p. 216.

  16. 16.

    Lampton (2006), p. 313.

  17. 17.

    Bush (2006), p. 174; Halper (2010), p. 18; Huang (2005); Kang (2007), pp. 96–97; van Kemenade (1998).

  18. 18.

    Bush (2006), p. 174.

  19. 19.

    Heginbotham (2007), p. 189.

  20. 20.

    Yu (2008a), pp. 374–375.

  21. 21.

    Bergsten et al. (2006), p. 33.

  22. 22.

    Bergsten et al. (2006), p. 33.

  23. 23.

    Eisenman (2007), pp. 39–40.

  24. 24.

    Teng (2007), p. 91.

  25. 25.

    Teng (2007), p. 91.

  26. 26.

    Ellis (2009), p. 38; Teng (2007), pp. 92–93.

  27. 27.

    Heginbotham (2007), p. 194.

  28. 28.

    Ellis (2009), p. 13.

  29. 29.

    Eisenman et al. (2007), p. xiv.

  30. 30.

    Bergsten et al. (2009), p. 9.

  31. 31.

    Lee (1997), p. xiv.

  32. 32.

    Shenkar (2005), pp. 2–3.

  33. 33.

    Bergsten et al. (2006), p. 73.

  34. 34.

    Chow (2006), p. 214.

  35. 35.

    Chow (2006), pp. 207–208; Shenkar (2005), pp. 161–162.

  36. 36.

    Brandt et al. (2007), p. 28.

  37. 37.

    Chow (2006), pp. 207–208; Shenkar (2005), pp. 161–162.

  38. 38.

    E.g. Navarro (2007), p. 3.

  39. 39.

    Oresman (2007), p. 71.

  40. 40.

    Oresman (2007), p. 71.

  41. 41.

    Bosshard (2008), p. 246.

  42. 42.

    Gao (2008), p. 60.

  43. 43.

    Gao (2008), p. 60.

  44. 44.

    Navarro (2007), p. 13.

  45. 45.

    Chow (2007), p. 198.

  46. 46.

    Sutter (2005), p. 184.

  47. 47.

    Sherwood (1990), pp. 191–199.

  48. 48.

    Maskus (1998), pp. 147–148.

  49. 49.

    Bergsten et al. (2006), p. 120; Gaye (2008), p. 138.

  50. 50.

    Wang (1999), p. 31.

  51. 51.

    Bergsten et al. (2006), p. 121.

  52. 52.

    Campbell (2007), p. x.

  53. 53.

    Bergsten et al. (2006), pp. 128–129.

  54. 54.

    Teng (2007), pp. 88–89.

  55. 55.

    Glosny (2007), p. 150.

  56. 56.

    Teng (2007), p. 88. In the context of China’s foreign policy, the oft-misinterpreted phrase ‘tāoguāng yănghuì’ (which many have translated as ‘conceal our capacities’) has been particularly controversial.

  57. 57.

    Bergsten et al. (2006), p. 121.

  58. 58.

    Kang (2007), p. 131.

  59. 59.

    Kang (2007), p. 80.

  60. 60.

    Bergsten et al. (2009), p. 224; Leal-Arcas (2009), pp. 398–399; Ostry (2003), p. 38.

  61. 61.

    Kurlantzick (2007), p. 95.

  62. 62.

    Kurlantzick (2007), pp. 33–36; Sutter (2005), p. 178. More problematically, the United States has chosen to provide assistance to Mexico a few years before the Asian financial crisis: Frost (2007), p. 105.

  63. 63.

    Gao (2008), p. 57; Glosny (2007), p. 155; Sutter (2005), p. 178.

  64. 64.

    Eisenman et al. (2007), p. xiii; Kurlantzick (2007), p. 95.

  65. 65.

    Eisenman et al. (2007), p. xiii.

  66. 66.

    Kurlantzick (2007).

  67. 67.

    Kurlantzick (2007), p. 36.

  68. 68.

    Lillian Craig Harris made a similar observation more than two decades ago: Harris (1985), p. 9.

  69. 69.

    Hsü (2000), p. 130.

  70. 70.

    Hsü (2000), p. 131.

  71. 71.

    Mitchell and McGiffert (2007), p. 8.

  72. 72.

    Kang (2007), pp. 82–83; Overholt (2007), p. 183.

  73. 73.

    Kang (2007), p. 3.

  74. 74.

    Zhang and Tang (2006), pp. 48–49.

  75. 75.

    Kim (2004), p. 49.

  76. 76.

    Yu (2011b), pp. 974–975.

  77. 77.

    Sautman and Yan (2008), p. 104.

  78. 78.

    Hufbauer and Wong (2005), p. 9.

  79. 79.

    Gao (2008), p. 61.

  80. 80.

    Hufbauer and Wong (2005), p. 9.

  81. 81.

    Yu (2011b), p. 1001. On China’s negotiations with Iceland, see Lanteigne (2010).

  82. 82.

    Chen (2008).

  83. 83.

    Heginbotham (2007), p. 199; Jiang (2010), p. 10.

  84. 84.

    Campbell (2007), p. xi.

  85. 85.

    Alden (2007), p. 60.

  86. 86.

    Alden (2007), p. 105.

  87. 87.

    Guttal (2008), p. 32.

  88. 88.

    Guttal (2008), pp. 26–27.

  89. 89.

    Kurlantzick (2007), p. 123.

  90. 90.

    Besada (2008), p. 28.

  91. 91.

    Leonard (2008), p. 128.

  92. 92.

    Leonard (2008), p. 128.

  93. 93.

    Rotberg (2008), p. 12; Taylor (2009), pp. 89–112.

  94. 94.

    Halper (2010), pp. 75–101; Lemos and Ribeiro (2007), p. 64; Rocha (2007), p. 16; Taylor (2009), p. 165.

  95. 95.

    Brautigam (2008), p. 213.

  96. 96.

    Ramo (2004), p. 4.

  97. 97.

    This incremental approach is attributed as much to the Chinese preference as it is to the ASEAN way.

  98. 98.

    Guerrero (2008), p. 193.

  99. 99.

    Guerrero (2008), p. 193.

  100. 100.

    Guerrero (2008), p. 193.

  101. 101.

    Wong and Chan (2003), p. 508.

  102. 102.

    Guerrero (2008), p. 193.

  103. 103.

    Sutter (2005), p. 266.

  104. 104.

    Chee and West (2004), p. 111; Pye (1992), p. xvi; Solomon (1999), p. 183.

  105. 105.

    Newby (2004), pp. 240–241.

  106. 106.

    Pye (1992), pp. 49–54; Solomon (1999), pp. 71–75.

  107. 107.

    Solomon (1999), p. 72.

  108. 108.

    Glosny (2007), p. 158.

  109. 109.

    Feng (2003), p. 6.

  110. 110.

    Yu (2011c), p. 977.

  111. 111.

    Drahos (2001), p. 794.

  112. 112.

    Christie et al. (2007), p. 220.

  113. 113.

    Giunta and Shang (1993), p. 329.

  114. 114.

    Yu (2012b), p. 238.

  115. 115.

    Keet (2010), p. 28.

  116. 116.

    Keet (2010), p. 28.

  117. 117.

    Bergsten et al. (2006), p. 129. Enshrined in the Bandung Conference of 1954 that sought to promote Asia-Africa solidarity, the Five Principles of Peaceful Coexistence included ‘mutual respect for territorial integrity and sovereignty, non-aggression, non-interference in internal affairs, equality and mutual benefit, and peaceful coexistence’: Mitchell and McGiffert (2007), p. 14.

  118. 118.

    Eisenman (2007), p. 29.

  119. 119.

    Bergsten et al. (2006), p. 134; Kurlantzick (2007), p. 186.

  120. 120.

    Kang (2007), p. 188.

  121. 121.

    Kurlantzick (2007), pp. 33–36.

  122. 122.

    This tendency, however, has slowly changed under the Obama administration, which has shown greater interest in Asia than its predecessor. For example, Hillary Clinton visited Asia in her first trip abroad, marking the first time in decades a US Secretary of State selected Asia, as opposed to Europe or the Middle East, as the destination of the first overseas trip. The last and only other time that happened was in 1961 when Dean Rusk served as Secretary of State: Economist (2009). In a speech in Tokyo, President Obama also described the United States as an ‘Asia Pacific nation’. As he declared: ‘As an Asia Pacific nation, the United States expects to be involved in the discussions that shape the future of this region, and to participate fully in appropriate organizations as they are established and evolve.’ Obama (2009).

  123. 123.

    Campbell (2007), p. x.

  124. 124.

    Eisenman (2007), p. 42.

  125. 125.

    Glosny (2007), pp. 159–160.

  126. 126.

    Glosny (2007), p. 154.

  127. 127.

    Corkin (2008), pp. 147–148.

  128. 128.

    Guerrero (2008), p. 194.

  129. 129.

    Eisenman (2007), p. 43.

  130. 130.

    Corkin (2008), p. 148.

  131. 131.

    Alden (2008a), p. 355.

  132. 132.

    Keet (2008), p. 81.

  133. 133.

    Alden (2008a), p. 354.

  134. 134.

    Harding (1985), p. ix.

  135. 135.

    Li (2008), p. 37.

  136. 136.

    Taylor (2009), pp. 177–178.

  137. 137.

    Taylor (2009), p. 161.

  138. 138.

    Burnett (2007), p. 59.

  139. 139.

    Brown (2008), p. 251; Halper (2010), p. 76; Taylor (2009), p. 164.

  140. 140.

    Yu (2007b), pp. 867–870.

  141. 141.

    Yu (2008b), p. 487.

  142. 142.

    Yu (2012a), pp. 396–397.

  143. 143.

    Yu (2011d, e).

  144. 144.

    Sutter (2005), p. 53.

  145. 145.

    Yu et al. (2003), p. 3.

  146. 146.

    Sutter (2005), p. 53.

  147. 147.

    Shambaugh (2006b), p. 24.

  148. 148.

    Bergsten et al. (2006), p. 120.

  149. 149.

    Gao (2007), p. 69.

  150. 150.

    Gao (2007), p. 70.

  151. 151.

    Pearson (2006), p. 246.

  152. 152.

    McManus (1999).

  153. 153.

    Kim (2004), p. 49; Qin (2010), pp. 173–175.

  154. 154.

    Yu (2007b), p. 863.

  155. 155.

    Bergsten et al. (2006), p. 129.

  156. 156.

    Yu (2007c), pp. 25–26.

  157. 157.

    Yu (2007c), p. 26.

  158. 158.

    Shambaugh (2006a), p. 16.

  159. 159.

    Alden (2007), p. 29.

  160. 160.

    Heginbotham (2007), p. 202.

  161. 161.

    Heginbotham (2007), p. 189.

  162. 162.

    Bergsten et al. (2006), pp. 139–140.

  163. 163.

    Zhang and Tang (2006), p. 59.

  164. 164.

    Yu (2011a, 2012b).

  165. 165.

    Campbell (2007), p. xi.

  166. 166.

    Heginbotham (2007), p. 190.

  167. 167.

    Yu (2011b), pp. 1018–1027.

  168. 168.

    Ramo (2004).

  169. 169.

    Kurlantzick (2007), p. 56.

  170. 170.

    Alden (2007), p. 60; Alden (2008b), p. 226; Glosny (2007), p. 167.

  171. 171.

    Besada (2008), p. 24.

  172. 172.

    Leonard (2008), p. 122.

  173. 173.

    Yu (2012a).

  174. 174.

    Yu (2011b), pp. 1022–1025.

  175. 175.

    Yu (2004), pp. 375–408; Yu (2007a), pp. 84–88.

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Acknowledgments

This chapter draws on research from the Author’s earlier articles: ‘Sinic trade agreements’ UC Davis Law Review (2011) 44:953–1028 and ‘The Middle Kingdom and the intellectual property world’ Oregon Review of International Law (2012) 13:209–262.

The Author is grateful to Linzey Erickson, Lindsey Purdy, Megan Snyder, and Jonathan Soike for excellent research and editorial assistance.

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Authors and Affiliations

  1. Intellectual Property Law Center, Drake University Law School, Des Moines, USA

    Peter K. Yu

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Correspondence to Peter K. Yu .

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  1. School of Law Faculty of Business and Law, Deakin University, Melbourne, Australia

    Christoph Antons

  2. Max Planck Institute for Innovation and Competition, Munich, Germany

    Reto M. Hilty

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Yu, P.K. (2015). Sinic Trade Agreements and China’s Global Intellectual Property Strategy. In: Antons, C., Hilty, R. (eds) Intellectual Property and Free Trade Agreements in the Asia-Pacific Region. MPI Studies on Intellectual Property and Competition Law, vol 24. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-30888-8_9

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