Intellectual Property Protection And Sino-us Trade Related Research

The issue on Intellectual Property has long been the main focus of Sino-US trade dispute. This thesis aims to research into the intrinsic relativity between Sino-US trade flow and the protection level of China's Intellectual Property Rights. Empirical study shows that insufficiency of China's IPR protection will indeed is increase US's trade loss with China, and the impact will take place during the current period. However, this trade loss caused by IPR protection insufficiency is quite limited, which can be well explained by the fact that the percentage of the trade loss in US's total export to China is quite small. Meanwhile, although we can see that China has been constantly improving its IP protection, criticism towards China has appeared a slow-down trend. Therefore, considering the insufficiency of China's IPR protection as the fundamental reason for Sino-US trade dispute is far from satisfaction. Based on the conclusion above, this paper further analyzes the deeper reason of Sino-US trade dispute caused by IPR protection:US is the net export country of IPR-intensive products who has an obvious preference for the strengthening of IPR, while China is the net import country of IPR-intensive products who has an endogenetic worry for thorough IPR protection. Therefore, the Sino-US IPR dispute actually reflects the competitive and comparative advantage of intra-industry trade between these two countries. In particular, with the upgrading of China's export products, as well as the enhancing of the level of science and technology in China's manufacturing industry, more and more Chinese export-oriented enterprises will encounter "Section 337" Investigation. During the frequent Sino-US trade dispute, US has been threatening to impose sanctions to China with the excuse of China's insufficiency of IPR protection, only to gain limited effect, due to the divergence among the interest groups inside US. This is also the subjective reason why China does not make all out efforts to protect IPR. Meanwhile the divergence interests of the central government, local government and individuals form the objective reasons. In the long run, the enhancement of IPR is beneficial for China, and China can learn from the experience of Japan in IPR and improve our national strength based on intellectual property.