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Beijing Asks for More Time to Combat Piracy
Richard McGregor, Financial Times, 6th September 2006

China needed more time to bring its anti-piracy standards up to the level of developed countries, Wen Jiabao, the prime minister, said on Tuesday, in an effort to fend off criticism on an issue that is a big irritant in relations with the west.

Speaking to foreign journalists before a week-long trip to Europe starting on Saturday, Mr Wen also expressed confidence that China could sustain high-speed economic growth, now running at well over 10 per cent.

"We are in a position to ensure continued and fairly fast growth of China's economy for a considerable period of time to come, " Mr Wen said. "We have full confidence in our ability to do so. "

The prime minister said China had only recently given priority to the protection of intellectual property rights (IPR) as a "matter of strategic policy ", partly through a push to nurture local technology.

"This [delay in enforcing IPR] has something to do with the level of development China has achieved, and China should be given some more time, " he said. "But what I wish to stress is that no one should fail to see the Chinese government's commitment to protecting IPR and the steps it has taken.

"In short, China's IPR protection effort will carry the full force of steel, and it will definitely not be something that is soft as bean curd, so to speak. "

Bo Xilai, China's commerce minister, said in a speech this week defending China's record on IPR that the country had 400,000 inspectors and police working on the issue.

The US is considering mounting a case in the World Trade Organisation targeting China's lax enforcement of IPR.

In a survey released on Tuesday by the EU Chamber of Commerce in Beijing, only 9 per cent of European companies surveyed said they had not had a problem with IPR enforcement in China over the past year.

Despite repeated government campaigns, pirated goods, ranging from DVDs to branded clothes, can be easily bought in China. Many industrial companies have also found their designs and technology stolen.

On the issue of Iran and North Korea and their nuclear programmes, Mr Wen stuck to China's line that the two issues "required committed diplomatic efforts " rather than sanctions. "Imposing sanctions will not necessarily get us there, and may even prove counter-productive. The parties involved should be cautious about moving towards sanctions, " he said.

Mr Wen will visit the UK and Germany as well as Helsinki, Finland, for the EU-China summit, during his European trip.

The survey by the EU chamber found that most European investors were optimistic about their prospects in China, with 83 per cent of respondents expecting to make money this year.

The remaining companies that will not be profitable in 2006 were more confident for the longer term.

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