China’s Intellectual Property Rights Protection And Empirical Analysis Of Its Impact On China’ S Electronic Equipment Trade To US

In this article we observe “Apple phenomenon” occurring in the Apple Corporationoperating, and concludes that there’s a division of labor of “R&D and production”between developed and developing countries, which is that developed countries focus onR&D and brand building, while transferring the production to developing countries. Thispaper attempts to use the existing international trade theory to explain this phenomenonof division of labor, however found out that the existing theory of international trade failsto explain this division of labor, as there is a deviation between the handling oftechnology and other elements with the technical elements of performance in reality.The paper aims to correct this bias. Noticing R&D is another important economicbehavior, independent of enterprise production. Developed countries transfer productionto developing countries to expand its monopoly profit, therefore phenomenonmentioned meets their interest. Gaining monopoly profit and transferring production arebuilt on the basis of intellectual property protection factors, so this paper proposes“protection of intellectual property rights theory” to explain this kind of division. Thedivision between R&D and production benefits developed countries, by not onlyexpanding the benefits of monopoly profits, also making the original R&D rational interms of economics. So that inconvenient R&D can be carried out.According to the theory of the intellectual property protection, it can draw aconclusion: the existence of intellectual property protection and strengthening havepositive impact to the volume of trade between developed and developing countries. Inthis paper, the trade data of electronic equipment products, classified under HS87chapter, from China to the U.S. in the period of1994-2008, and with empirical analysisof impact on changes level of IPR protection to the products trade between China and theUnited States of. The result shows that the strengthening of intellectual propertyprotection level has significant positive effects on China’s trade with the US.