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TIA CONTACT: ALYSON BANKS, TIA, +1.703.907.7723, abanks@tiaonline.org
PR CONTACT: ASHLEY ROOK, RATIONAL 360, +1.202.429.4929, AshleyRook@Rational360.com

TIA Files Comments on China’s WTO Compliance   

ARLINGTON, VA (September 25, 2012) – The Telecommunications Industry Association (TIA), the leading association representing the manufacturers and suppliers of high-tech communications networks, yesterday filed comments regarding the status of China’s compliance with their WTO obligations to the United States Trade Representative (USTR) with USITO and other leading technology industry associations.

The comments recognize where progress has been made, raise issues of concern and suggest approaches to resolve areas of disagreement in the following areas:

China’s Indigenous Innovation Policies: China’s drive to promote “indigenous innovation” is embodied in numerous industrial policies and measures that systematically favor products and services of Chinese companies over those of foreign companies, especially in the government and public procurement markets.

Intellectual Property Rights: Despite expanded efforts in the past years to deal with Intellectual Property Rights (IPR) problems, piracy and counterfeiting at the wholesale and retail level, and over the Internet, remain high due to inadequate penalties, uncoordinated enforcement among local, provincial, and national authorities, and the lack of transparency in China’s administrative and criminal enforcement system.

Technology Licensing: USITO companies continue to be concerned about governmental interference in licensing agreements.

Technical Standards Setting: China is aggressively implementing and utilizing technical standards to support development of key industries, especially the ICT industry.

Customs Valuation: USITO continues to be informed of situations not in agreement with the WTO Customs Valuation Agreement.  USITO recommends that China pursue Customs modernization efforts, which are consistent with those of other WTO members. 

Conformity Assessment & Type Approval: China’s current type approval process for telecommunications equipment is not sufficiently transparent and stipulates burdensome, non- technology-neutral testing and conformity assessment requirements that require the submission of unnecessary confidential business information.

Information & Cyber Security: There are a growing number of cybersecurity- and information security-related areas in which China’s policies create challenges for USITO member companies, especially for commercial and non-sensitive government-sector market access for ICT products.

Government Procurement: From environmental protection to energy efficiency to information security, wide-ranging policies have increased the administrative burden on companies participating in government procurement.

Environmental Standards and Compliance Regulations: China’s energy efficiency programs present a number of challenges to foreign companies, including standards that deviate from global standards, mandatory labeling requirements, and energy efficiency requirements related to government procurement and market access.

Communications Services: Since China's WTO accession, some aspects of China’s communications services regulations have improved, while others remain highly restrictive to foreign enterprises. China should continue to harmonize its regulations with international norms in this area, including its Telecom Law and Telecom Services Categories Catalogue, both of which are under revision but without clear timelines.

Commercial Internet Regulations: The draft revised version of China's Internet Information Services Administrative Measures released in June 2012 poses market access barriers for global Internet services companies. USITO believes that while Internet regulation may be necessary for societal stability, country-specific regulation relating to the creation, release, and transmission of certain types of content can constitute trade barriers for global Internet services companies.  In addition, the proposed rules run counter to the global nature of the Internet.

                                                                                           About TIA

The Telecommunications Industry Association (TIA) represents manufacturers and suppliers of global communications networks through standards development, policy and advocacy, business opportunities, market intelligence, and events and networking. TIA enhances the business environment for broadband, mobile wireless, information technology, networks, cable, satellite and unified communications. Members' products and services empower communications in every industry and market, including healthcare, education, security, public safety, transportation, government, the military, the environment, and entertainment. Visit tiaonline.org for more details.

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