Short Takes

Intellectual Property

Several developments in intellectual property rights (IPR) have occurred recently: The interagency IPR Working Group was disbanded as part of the government restructuring; China released a detailed plan to improve intellectual property protection; and the World Trade Organization appointed panelists in a case in which the United States is challenging China's restrictive market access for copyright-intensive industries.

In addition, the State Council in April approved China's 2008 IPR Strategy Outline, which was expected to be released in May. The strategy aims to improve protection of, international cooperation on, and domestic awareness of intellectual property. The strategy also encourages innovation and the use of new technologies among PRC companies.

Two foreign companies recently won cases against PRC copyright infringers. First, Ferrero Group's three-year battle against PRC-based Montresor (Zhangjiagang) Food Co., Ltd. ended with a Chinese court ordering Montresor to stop producing its Tresor Dore chocolates and pay Ferrero €50,000 ($79,085) in "symbolic" damages. Second, Gucci Group's case, in which it claimed counterfeiters were using its interlocking "GG" logo on ladies' sandals, ended with a settlement of ¥180,000 ($25,734).

National People's Congress

The highlight of the inaugural session of the 11th National People's Congress (NPC) was the unveiling of a much-anticipated government restructuring plan. The main aim of the plan is to streamline government and reduce the number of agencies with competing or overlapping responsibilities. The plan created the Ministry of Industry and Information, which will take over most industry approval functions; the National Energy Commission, which will coordinate energy policy; and four other new ministries.

The NPC also appointed several new PRC leaders, including three new vice premiers: Li Keqiang, Zhang Dejiang, and Wang Qishan, who were assigned the macroeconomic management; industry, telecom, and energy; and trade and finance portfolios, respectively.

Taiwan

Despite reports of a close presidential race in Taiwan in the final days before voters went to the polls in late March, Nationalist Party candidate Ma Ying-jeou won by 17 points. Two referenda that called on Taiwan to apply for United Nations membership as an independent entity failed, perhaps signaling voters' desire for better relations with the mainland.

In line with Ma's campaign pledge of better cross-Strait relations, direct talks between Taiwan and mainland China, halted since 1999, seem likely to resume soon after Ma takes office on May 20. PRC President Hu Jintao and Taiwan Vice President-elect Vincent Siew met on the sidelines of the Boao Forum in Hainan in mid-April—reportedly the highest-level contacts between the two sides since 1949.

Economy

China's currency, the renminbi (RMB), passed the 7:1 threshold against the US dollar on April 9, marking a 4.3 percent rise against the dollar since January 1 (see The Great Currency Debate).

China's economy grew 10.6 percent in the first three months of 2008, slightly less than in the first quarter of 2007. Slower growth was likely due to severe winter weather in China and US economic woes.

China's first-quarter trade surplus fell 11 percent year on year, with the total value of imports rising 28.6 percent and the value of exports growing 21.4 percent. Meanwhile, rising food prices pushed the consumer price index to 8 percent for the first quarter of 2008, according to the PRC National Bureau of Statistics.

In other news, China revised its 2007 gross domestic product upward by ¥3.6 trillion to ¥25.0 trillion, increasing the year-on-year growth rate to 11.9 percent.

The World Bank named China the world's second-largest economy in terms of purchasing power, replacing Japan.