[Congressional Record Volume 141, Number 24 (Tuesday, February 7, 1995)]
[Senate]
[Page S2264]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


    UNITED STATES TRADE SANCTIONS ON THE PEOPLE'S REPUBLIC OF CHINA

  Mr. THOMAS. Madam President, late yesterday afternoon the Office of 
the United States Trade Representative received a letter from Wu Yi, 
the PRC Minister of Trade, stating that the Chinese were prepared to 
resume talks in Beijing next week on the issue of infringements on 
American intellectual property rights.
  As I noted on the floor of the Senate yesterday, since 1992 the PRC 
has failed to live up to its obligations under the memorandum of 
understanding on intellectual property rights. Factories throughout 
China, especially in the southern and eastern provinces, continue to 
mass-produce pirated versions of American computer software, compact 
discs, CD-ROM's, and video and audio cassettes mostly for sale abroad. 
The USTR estimates that the sale of these pirated items has cost U.S. 
businesses more than $1 billion. Efforts by the USTR to bring the PRC 
into compliance with the MOU have failed, resulting in the proposed 
sanctions announced by the administration on Saturday.
  Madam President, I am very pleased that the Chinese Government has 
agreed to resume negotiations over this vitally important issue. A 
strong and equitable relationship between our two countries is of the 
utmost importance, and I know that no one relished the prospect of a 
protracted trade dispute. I hope that the PRC will use this opportunity 
to constructively address our grievances, and move toward adopting 
stronger measures to curb economic piracy.

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