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Counterfeiting Next Big China Issue.

The US and China may have settled their dispute over Beijing's VAT treatment of chips, but this means that counterfeiting can now move to the top of the agenda as far as America's chip industry is concerned.

Washington and Beijing announced last week that they had struck an agreement that will see the end of a VAT rebate system that discriminated against chip imports to China. The settlement came just months after China backed down over plans to introduce a wireless LAN standard that overseas vendors saw as proprietary.

The two settlements took care of the two biggest disputes between the US and China, but American chip makers have other concerns they are looking to address.

A spokesman for the Semiconductor Industry Association said the biggest outstanding concern is the counterfeiting industry in China. He said that Beijing has put the right laws in place, "but there's still a large amount going on."

While counterfeiting is rife in China, the SIA spokesman said the countries were not out of sync on the issue. Rather, it is question of ensuring that the government policies are enacted on the ground.

He said the organization planned a seminar in the country later in the year to highlight the issue.
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Publication:Computergram International
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 16, 2004
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