Trade and Investment Working Group
INNOVATION POLICY
The United States and China believe that innovation is a key driver for economic development, job creation, and shared prosperity, and innovation plays a vital role in developing solutions to domestic, international, and social challenges. The two sides further recognize that the ability of China and the United States to carry out trade, business, and joint innovation will help promote the well-being of both peoples and promote global economic growth.
Recognizing the importance of interconnected global digital infrastructures and the value of innovative technologies in effectively managing evolving new risks, the two sides recognize that generally applicable Information and Communications Technology (ICT) security-related measures in their respective countries in commercial sectors do not discriminate unnecessarily or unnecessarily restrict trade or the flow of information in an orderly fashion.
China explained that its “secure and controllable” policies generally applicable to the commercial sector are not to unnecessarily limit or prevent commercial sales opportunities for foreign suppliers, of ICT products, services, or technologies and will not impose nationality-based conditions and restrictions on the purchase, sale, and use of ICT by commercial enterprises unnecessarily.
In accord with China’s obligations under the WTO Technical Barriers to Trade (TBT) Agreement, it will notify relevant technical regulations to the WTO TBT Committee.
EXPORT CONTROLS
The U.S. Department of Commerce and the Chinese Ministry of Commerce successfully held the 11th meeting of the U.S.-China High Technology and Strategic Trade Working Group (HTWG) in Beijing on September 28, 2016. At the meeting, the two sides reviewed the recent progress made by the working group, held detailed discussion on Specific Measurements Of Strengthening Exchange Of Individual Case Information, which was concluded then; and exchanged in-depth views on issues of mutual concern, such as encouraging and facilitating exports of commercial high technology items to China for civilian end user and civilian end uses, expansion of priority areas of cooperation, strengthening cooperation on end use visits, and a 2017 work plan. The U.S. side and Chinese side speak highly of this meeting.
Both sides noted that following the two Presidents meetings in recent years, the U.S. and China have made practical and fruitful cooperation from which both sides agree to actively and practically explore specific measurements to enhance cooperation of U.S.-China high technology trade in priority areas.
The two sides reached conclusion on Specific Measurements Of Strengthening Exchange of Individual Case Information. Both sides consider it important to strengthen the exchange of individual case information to increase mutual trust and pragmatic cooperation, specifically in respect of commercial, high-technology items exported to China for civilian end user and civilian end uses. Both sides agree that individual cases identified by the Chinese side and responded to by the U.S. side could reflect important working efforts. Such efforts may be reported by both sides at the annual JCCT meeting.
The U.S. side confirms that its amendments on Commerce Control List to implement Wassenaar Arrangement and other multilateral export control regime list revisions in 2016 result in facilitated exports to most countries, including China, if for civilian end users and civilian end uses.
The United States reiterated its commitment to encourage and facilitate exports of commercial high technology items to China for civilian end users and for civilian end uses. The U.S. side agreed to continue to objectively review license applications involving commercial exports to Chinese civilian end users and civilian end-uses consistent with U.S. laws and policies.
Both sides agreed to continue to strengthen cooperation in end-user visits in accordance with the provisions of the End-Use Verification Understanding.
EXCESS CAPACITY
- Steel: China and the United States agree to jointly promote the expeditious establishment of the Global Forum on Steel Excess Capacity. Upon the establishment of this Global Forum, the United States and China, recognizing the G20 Leaders’ commitment to take effective steps to address the challenges of global excess capacity so as to enhance market function and encourage adjustment, commit to actively participate and strengthen information sharing and cooperation. China and the United States will hold an informal China-U.S. JCCT Steel Dialogue in 2017, to fulfill the consensus reached at the G20 Leaders Hangzhou Summit and the 8th U.S.-China Strategic and Economic Dialogue in June, exchange and share global steel development information, review steel capacity and production and the trade situation since the 2016 JCCT Steel Dialogue, and share the experiences and lessons learned with regard to structural adjustment under the circumstances of excess capacity.
- Aluminum: The United States and China are to exchange information in furtherance of their joint commitment at the U.S.-China Summit Meeting in Hangzhou i.e., to work together to address global electrolytic aluminum excess capacity.
- Soda Ash: The United States and China are to exchange information regarding the soda ash industry.
CHINESE ENTERPRISES’ INVESTMENT IN THE UNITED STATES
In the JCCT, China has attached importance to Chinese investment in the United States. The United States welcomes investment from all countries, including China. The United States reaffirms its open investment policy and a commitment to treat all investors in a fair and equitable manner under the law. To continue to help Chinese enterprises investing in the United States obtain a better understanding of U.S. national and local business environments, the U.S. will provide relevant information through the "Select USA" initiative, as appropriate.
COMPETITION
The United States welcomed China’s clarifications and commitments made in the 2014 and 2015 JCCTs and S&EDs regarding Anti-Monopoly Law (AML) enforcement. China clarifies that its laws, regulations, rules, and guidelines, as well as decisions on administrative penalties and merger reviews (published pursuant to AML Art. 30), are published on the websites of China’s anti-monopoly enforcement agencies and will be updated in a timely manner.
INTEGRATED CIRCUITS
China and the United States jointly reaffirm their commitment to a strong, vibrant global semiconductor industry that operates in fair, open and transparent legal and regulatory environments. China reaffirms that operation of the integrated circuit investment funds are based on market principles and that the government does not interfere with the normal operation of the funds. China clarifies that the government has never asked the fund to require compulsory technology or IPR transfer as a condition for participation in the Funds’ investment projects. The United States welcomes China’s clarification and further exchange on this topic.
VISAS
Both sides will continue to discuss the mutually beneficial visa arrangement through channels of consular consultation and meeting, etc., to further facilitate the travel between our countries.
TRADE POLICY COMPLIANCE
The United States and China affirm their willingness to consider each side’s respective concerns relating to the compliance of trade policies with relevant WTO principles and disciplines. The United States welcomes China’s confirmation that the Ministry of Commerce has coordinated with relevant departments and local governments regarding U.S. concerns relating to International Well-Known Brand subsidies and farm machinery subsidies and that China is prepared to adjust the measures at issue as necessary. The two sides are to continue to consult regarding these two matters in 2017.
COMBATING BUSINESS EMAIL COMPROMISE SCAMS
China and the United States announced deepening cooperation on combating “Business Email Compromise” scams at the S&ED in 2016. On this basis, to supplement ongoing law enforcement cooperation, DOC and MOFCOM commit to hold a joint seminar in 2017 to raise awareness of Business Email Compromise scams among industry circles of both countries. This joint seminar will include law enforcement officials and private sector representatives from each country.
DE-LINKING INNOVATION POLICY FROM GOVERNMENT PROCUREMENT PREFERENCES
The General Affairs Office of the State Council issued a document recently, requiring all local regions and all agencies to further clean up related measures involving linking the indigenous innovation policy to the provision of government procurement preferences, so as to practically implement the commitment made by the Chinese side. The U.S. side welcomes this development.
ECONOMIC STATISTICS AND DATA REPORTING
The United States and China value the outcomes achieved by Statistics Working Group under the Joint Commission on Commerce and Trade. During the 13th meeting of the working group held on November 8-9, 2016, both sides reviewed the progress of each research topic, confirmed the new method for further reducing the statistical discrepancies of bilateral merchandise trade, analyzed the causes for the statistical discrepancies of China’s foreign direct investment in the United States, and discussed the further analysis of statistical discrepancies of trade in services. On the base of deepening the existing research topics, both sides jointly agreed to launch the research on statistical discrepancies of U.S. foreign direct investment in China.
Further, experts from both countries discussed national accounting methods, including GDP, new economy statistics, balance sheets, and supply use tables. Both sides agreed to cooperate on the 4 key areas above and draft a 2017 work plan by the end of this year. Both sides also agreed to draft a research report on statistical discrepancies of merchandise trade and a research report on statistical discrepancies of China’s foreign direct investment in the United States, and submit them to the 28th Joint Commission on Commerce and Trade.
TBT AND SPS NOTIFICATION PROCESSES
The United States and China agree to hold an informational exchange on “TBT and SPS Notification Procedures” in China in 2017. The United States commits, subject to applicable law and the availability of necessary resources, to cover all expenses related to the activity, including costs of the venue and interpreters. To strengthen their common understanding, China and the United States commit to work together to develop the content and agendas for the exchange, send expert speakers, and invite staff in charge of TBT and SPS transparency from both sides to participate.
THEATRICAL FILMS
In accordance with the provisions of paragraph 12 of the Memorandum of Understanding between the People’s Republic of China and the United States of America Regarding Films for Theatrical Release (MOU) signed on April 25, 2012, China affirms that it will enter into consultations with the United States in calendar year 2017 in order to provide further meaningful compensation to the United States. To this end, the United States and China agree that, as part of the calendar year 2017 consultations, they will seek to increase the number of revenue-sharing films to be imported each year and the share of gross box office receipts received by U.S. enterprises as well as seek to address outstanding U.S. concerns relating to other policies and practices that may impede the U.S. film industry’s access to China’s market such as importation rights, the number of distributors of imported films and the independence of distributors, among other issues.
SOCIAL CREDIT SYSTEM
China attaches importance to guiding public participation during the process of promoting the construction of its Social Credit System. China, in accordance with relevant domestic laws and administrative regulations, will seek public comments on the website Credit China (www.creditchina.gov.cn <http://www.creditchina.gov.cn/>) and other relevant websites when it develops laws, administrative regulations and rules relevant to the Social Credit System.
COSMETICS REGULATORY DIALOGUE
Recognizing the need for further collaboration and exchange on international best practices in cosmetics regulation, building on the 2016 JCCT Cosmetics Regulatory Dialogue, China and the United States agree to hold a second Cosmetics Regulatory Dialogue in Beijing in 2017 (aiming for first half of the year) under the JCCT Trade and Investment Working Group. The Dialogue will include participation from government officials and stakeholders, including industry experts. Through the Dialogue, the two sides aim to enhance mutual understanding of existing and emerging cosmetics regulations, guidance, standards and regulatory practices; promote consumer protection; and continue concrete exchanges on shared topics of interest.
WINE CERTIFICATION
China supports the efforts made by the United States to promote wine trade and a uniform certificate for the APEC region on APEC Wine Regulatory Forum. China is open to further exchange and communication with the United States to promote the healthy development of wine trade and the wine industry.
IPR Working Group
LICENSING
China is actively conducting research on the Technology Import and Export Administration Regulations (2002) (TIER) to address U.S. concerns, to support China's efforts to become an innovative economy, and to better address newly emerging areas of technology transfer. To that end, MOFCOM will convene a joint seminar with the United States in the first quarter of 2017.
TRADE SECRETS
China confirmed that it is strengthening China’s trade secrets protections, including through planned amendments to the Anti-Unfair Competition Law (AUCL), and related judicial practice. China confirms that, in practice, trade secrets misappropriation may be committed by individuals, including employees, who may not be directly involved in the manufacture or sale of goods and services. China plans to bolster other elements of its trade secrets regime, including with respect to the availability of evidence preservation orders and damages based on market value, consistent with other developments in intellectual property law in China, as well as the issuance of a judicial interpretation on preliminary injunctions and other matters. Both sides confirm that, in those cases in which a judicial or administrative enforcement authority requests the submission of confidential information in conjunction with a trade secret enforcement matter, such requests will be narrowly tailored to avoid putting at risk sensitive business information and will be subject to appropriate protective orders to control additional disclosure and ensure that information is not further misappropriated and that any decision that is made publicly available in conjunction with a trade secret enforcement matter will have all confidential information appropriately redacted. The United States and China confirm that trade secret investigations are conducted in a prudent and cautious manner.
HIGH-LEVEL COMMITMENT TO PRIORITIZE ENFORCEMENT AGAINST ONLINE IPR COUNTERFEITING AND PIRACY
The United States and China fully recognize the significance that enforcing against infringement and counterfeiting online has in protecting intellectual property rights and consumers, and fostering a fair competitive market.
The two sides will strengthen cooperation with right holders and e-commerce platforms to actively and jointly promote the training of US and Chinese small and medium-sized enterprises by e-commerce platforms on protecting intellectual property rights, to help them to use these platforms to foster international trade. Both sides will explore the use of big data and other new information technologies to enhance the capability for combating infringement and counterfeiting online.
China will actively promote e-commerce-related legislation, strengthen the supervision over network infringement and counterfeiting. In order to address suspected instances of online criminal piracy and trademark counterfeiting in the United States affecting Chinese right holders, the Joint Liaison Group (JLG) IP Criminal Enforcement Working Group point of contact in the U.S. Beijing Embassy will receive such referrals from China's administrative agencies.
BAD FAITH TRADEMARKS
Affirming their long-standing cooperation on administrative and judicial trademark issues, the United States and China agree that trademarks obtained and asserted in bad faith hinder legitimate commerce, mislead consumers, and deter investment in building global brands. The United States appreciates the positive efforts China has made under the new Trademark Law. Building upon this, China will take further efforts to combat bad faith trademark filings. Moreover, the United States and China will continue to prioritize the issue of bad faith trademark filings, and both sides will strengthen exchanges and communication through bilateral and multilateral channels.
SPORTS BROADCAST COPYRIGHT PROTECTION
The United States and China will continue to implement the consensus reached by the China - US Joint Commission on Commerce and Trade (JCCT) in 2015 on sports broadcasts. To facilitate the implementation of the commitments, the United States and China confirm that broadcasts of sporting events, including when transmitted over the Internet, should be protected under their respective laws and regulations. China is committed to further study the feasibility of protecting the broadcasts of sporting events under its Copyright Law. China understands the view of the United States that other forms of protection (the Tort law, the Unfair Competition Law, etc.) provide insufficient protection or legal certainty to facilitate license agreements or the investments made in obtaining the rights to broadcast live sporting events. The United States welcomes further clarification on the circumstances under which copyright is available for live sports broadcasts from the Chinese judiciary at the earliest possible time. The United States and China further agree to deepen their technical discussions on copyright protection for sports broadcasts, including by convening a program on the subject in 2017.
CHINA-U.S. IPR COOPERATION
Both parties are to continue to develop the leading coordinating role of the U.S.-China JCCT IPR Working Group, to resolve IPR-related issues of concern to both parties, and to strengthen their cooperation which forms an underlying basis of their intellectual property relationship.
Both China and the United States commend the U.S. IPR Judicial Study Tour held in April 2016 under the U.S.-China IPR Cooperative Framework Agreement ("CFA"). Both the United States and China attach great attention to the realization of relevant projects under the CFA, and intend to carry out IPR cooperation and exchange projects. Both sides will discuss launching a possible new Cooperative Framework Agreement and new cooperative programs, subject to budget availability, after completion and evaluation of remaining programs under the current CFA.
China’s Ministry of Commerce (MofCOM) and U.S. Patent & Trademark Office (USPTO) will continue cooperative programs on a range of IP-related topics.
In order to demonstrate a commitment to fostering cooperation between governments and rights holders, combatting IPR infringement, and promoting innovation and creativity, both countries are to conduct numerous substantive exchanges and programs on important IPR issues in the year ahead. Highlights of this work are as follows:
- A technology licensing program co-sponsored by the Ministry of Commerce;
- A program on protection of live sports broadcasts with the National Copyright Administration, and relevant agencies;
- A program to exchange information on China’s legal protections for product and service designs, and U.S. trade dress protections;
- Programs on criminal enforcement of trade secrets and counterfeit pharmaceuticals;
- A joint conference in 2017 to share experiences on recent trends in technologies, business models, and international legal developments and to discuss possible ways that criminal law, legislation, and enforcement on IPR may be effectively utilized and adapted to address current and emerging IPR challenges; and
- A workshop on Judicial IPR Protection in China in 2017.
STRENGTHENING IPR PROTECTION AT TRADE SHOWS
Both China and the United States affirm the importance and challenges of intellectual property rights protection at trade shows. The United States recognizes China's efforts to work with trade show organizers to establish intellectual property rights service stations at trade shows to help resolve disputes regarding IPR infringement involving Chinese enterprises, help Chinese enterprises better understand the U.S. systems for protecting and enforcing IP rights as they apply at trade shows, and promote trade in legitimate IP-intensive products and services. The United States supports the goals of this effort and commits to maintain communication and information exchange with China regarding intellectual property rights protection at trade shows.
STANDARDS AND IPR
China and the United States recognize that standards setting can promote innovation, competition and consumer welfare. They also reaffirm that IPR protection and enforcement is critical to promote innovation, including when companies voluntarily agree to incorporate patents protecting technologies into a standard. Both sides recognize that specific concerns may exist relating to the licensing of standard essential patents that are subject to licensing commitments and that such commitments may be valuable in promoting both the development and implementation of technical standards. China and the United States further agreed that patent issues related to standards raise complex issues that require standard setting organizations to take into account the appropriate balance among the interests of patentees, standard users and the public when developing and adopting their rules on patent issues. China and the United States commit to continue engaging in discussion of these issues.
SPECIAL 301 REPORT
The United States confirms its commitment to objectively, fairly, and in good faith evaluate the efforts made by foreign governments, including the Chinese Government, for protecting and enforcing intellectual property rights in the Special 301 Report. The United States welcomes reforms and actions designed to strengthen China's intellectual property rights protection, and commits to highlight positive actions on IP protection and enforcement undertaken by the Chinese Government in the 2017 Special 301 Report.
NOTORIOUS MARKETS LIST
The United States reiterates its commitment to objectively, fairly and in good faith evaluate and recognize the efforts made by and results achieved by foreign entities, including Chinese entities, with respect to intellectual property protection and enforcement in the Notorious Markets List, as appropriate. China recognizes that the United States has further enhanced the transparency of the process by doubling the length of the rebuttal period for interested stakeholders in 2016.
Commercial Law Working Group
LEGAL EXCHANGE
The 20th U.S.-China Legal Exchange was held in Alexandria, Virginia and Palo Alto, California in February and March 2016. In a dynamic and fruitful discussion, legal experts from both sides addressed two topics of key concern to both sides: developments in China’s intellectual property rights (IPR) laws, and e-commerce and IPR. China and the United States agreed to convene the 21st Legal Exchange in Beijing and Shanghai in December 2016 on bankruptcy law topics, to deepen understanding of our respective bankruptcy systems and share ideas on bankruptcy law reform.
Medical Devices and Pharmaceuticals Working Group
MEDICAL DEVICES AND PHARMACEUTICALS
- Policies of the Chinese government in promoting development and application of domestically produced medical devices, are to encourage domestic industrial development, and will not discriminate against or exclude overseas brands or products manufactured overseas. Relevant policies and measures of the central government departments are intended to strengthen advocacy; to establish cooperative platforms for government, industry, academic, research and medical institutions; to improve the quality and standard of domestic medical devices; and shall not be linked to procurement practices. In accordance with relevant laws and regulations, China commits to strengthen oversight on government procurement of medical devices and to treat overseas brands and products manufactured overseas in a transparent, fair and equitable manner, and both sides stand ready to further communicate with parties concerned.
- China has issued two batches of Class II Medical Device Clinical Trial Exemption Catalogues and Class III Medical Device Clinical Trial Exemption Catalogues. China will continue to develop and work on the drafting and adjustment of the Medical Device Clinical Trial Exemption Catalogues. During the development process, China will listen to opinions from industry and relevant stakeholders.
- The Chinese side encourages clinical-value-oriented innovative drugs to be registered and marketed in China, and will further improve related policies, regulations and technical requirements to improve the drug registration review and approval process, to allow drug registration applicants, after approval, to conduct clinical trials within and outside of the territory in parallel, and to allow overseas drug manufacturers to supplement the certificate of pharmaceutical product (CPP) when applying for drug marketing license.
PHARMACEUTICAL REGULATORY EVALUATION AND APPROVAL
China and the United States support pharmaceutical regulatory policies that foster global innovation and protect public health. As for the implementation of drug pricing commitments, China affirms that drug registration review and approval shall not be linked to pricing commitments and shall not require specific pricing information.
COMPANY VERIFICATION
The Chinese side while working on case review, sometimes cannot obtain timely information that accurately reflects changes that happened with foreign registrant’s registration and due to this lack of accurate information case review is delayed. Therefore, both sides hope to establish a communication channel, and U.S. government will provide appropriate assistance with the verification of relevant information about a foreign registrant according to CFDA’s requests, and timely respond to CFDA. Agreement on this work has been reached in the Medical Device Subgroup, and it will begin after both sides clarify the contact point and contact method.
DOWN CLASSIFICATION
Since April 2015, China has amended the Medical Device Classification Rules, formed the Medical Devices Classification Technical Committee, organized and carried out the work to fully amend the Medical Device Classification Catalogue, and has suggested the reclassification of products such as allergy reagents, IVDs used for flow cytometry reagents and immunohistochemistry. China’s work on adjusting medical device classification referenced the commonly recognized and risks based principles, and combined with China’s regulatory reality, appropriately downgraded device classes. The revised catalogue will be released after seeking further public comments and research as well as making improvements accordingly.
UNIQUE DEVICE IDENTIFICATION (UDI)
- China highly values international UDI research and development and implementation experience. During the drafting of China’s identification number regulations and implementing plans, China will fully consider the U.S. proposal to rely on international standards and harmonize with globally accredited UDI issuing agencies, and China will offer a phased-in and risk-based implementation approach, with an initial implementation period for phase I to be no less than 2 years from issuance of the final rule, and exempting all devices manufactured or labeled prior to the rule’s effective date.
- Based on China’s current situation, the Chinese side will study international experience, to further complete the building plan of China’s UDI and traceability system and establish medical device identification number regulations. During the drafting of the medical device identification number regulations and implementing plans, China will consider international standards, globally accredited issuing agencies and other international UDI guideline topics.
COOPERATION IN COMBATING ONLINE SALES OF COUNTERFEIT DRUGS
Combating online sales of counterfeit drugs and keeping citizens safe and healthy is a priority for both China and the United States. The United States and China have previously worked together to combat online sales of counterfeit drugs and commit to continued collaboration going forward. This collaboration includes sharing information and best practices on improving public awareness about sales of drugs on the internet, enhancing communication and coordination in ongoing activities of international organizations, and exchanging views on enforcement mechanisms to combat counterfeit pharmaceuticals.
Agricultural Products, Inspection and Quarantine
FOOD SAFETY COOPERATION FOR IMPORTED FOODS
Building on the 2015 JCCT commitments to cooperate on food safety matters, China and the United States conducted technical discussions about their respective certificate requirements for imported foods. Both sides agree to further cooperation and discussions regarding import requirements related to food safety.
COOPERATION ON CATISH
Building on the 2015 JCCT commitments to cooperate on food safety matters, China and the United States conducted technical discussions on China's concerns on catfish rules. Both sides agreed to further cooperation and discussion on this issue.
AQUATICS
Both sides agree to continue cooperation, through existing mechanisms, regarding food safety supervision systems for aquatic products.
DAIRY PRODUCTS
Both sides agree to continue cooperation, through existing mechanisms, regarding food safety supervision systems for dairy products.
AVIAN INFLUENZA
As Member countries to the World Organization for Animal Health (OIE), China and the United States recognize that the OIE’s Terrestrial Animal Health Code provides the sanitary requirements for the safe trade of poultry commodities related to avian influenza, and commit to limit trade restrictions due to avian influenza outbreaks to those recommendations. China and the United States commit to exchange information and collaborate on the efforts that will lead to the recognition of zones free of high pathogenicity and low pathogenicity (subtypes H5 and H7) avian influenza consistent with the recommendations of the OIE Terrestrial Animal Health Code to minimize unnecessary disruptions of trade.
Civil Aviation Services
AIRWORTHINESS
The Civil Aviation Administration of China (CAAC) and the Federal Aviation Administration (FAA) of the United States continue strengthening dialogue and communication as evidenced by the recently established FAA-CAAC System and Process Improvement Team Charter, in order to continue to work toward expansion of the bilateral agreement related to airworthiness to include transport category airplanes.
Environment Working Group
ENVIRONMENTAL INDUSTRIES FORUM
The United States and China reaffirm their commitment to continued cooperation on environmental protection through the Environmental Industries Forum (EIF). The two countries plan to convene the next EIF in 2017 and address the topics of waste management and soil contamination, including groundwater pollution prevention and remediation.
Technology and Standards
AVIATION SECURITY EQUIPMENT
The United States confirms that the Transportation Security Administration (TSA) has in place an equitable process, open to domestic and foreign enterprises, for the request of evaluation and qualification of civil aviation security screening equipment. The United States commits that TSA shall undertake to expeditiously process applications received from all manufacturers for possible qualification of civil aviation security screening equipment in accordance with principles of fairness and non-discrimination.
ILLEGAL LOGGING AND ASSOCIATED TRADE/LACEY ACT
The United States and China reaffirm their commitment to combat illegal logging and associated trade and promote trade in legal wood products. Both sides intend to continue to use relevant fora, such as the United States-China Bilateral Forum on Combating Illegal Logging and Associated Trade, to share information regarding domestic actions and international cooperation to combat trade in illegal forest products. The Bilateral Forum most recently met in November 2016 and had a productive dialogue on a range of matters, including implementation of and enforcement under the Lacey Act. Both sides also commit to reinforce their efforts to combat illegal logging and associated trade through the Asia Pacific Economic Cooperation Experts Group on Illegal Logging and Associated Trade. The relevant agencies of both sides plan to discuss potential cooperation on wood identification technologies and other actions to combat illegal logging and associated trade, and to encourage the participation of the private sector and civil society in their work.
STRENGTHEN CHINA-U.S. COOPERATION IN THE FIELD OF NATIONAL QUALITY INFRASTRUCTURE (NQI)
China and the United States will continue to explore opportunities to strengthen mutually beneficial cooperation in the field of national quality infrastructure (NQI).
Bilateral Cooperation and Exchanges
COOPERATION ON CUSTOMS ENFORCEMENT OF IPR
The General Administration of China Customs, U.S. Customs and Border Protection, and U.S. Immigration and Customs Enforcement conducted joint IPR enforcement operations, held a working group meeting in September 2016, and developed a 2017 Action Plan. Both sides will continue cooperation through activities such as information sharing, joint operations, capacity building (training), engagement with right holders, and public education and awareness.
MUTUAL RECOGNITION OF AEOs & C-TPAT JOINT CERTIFICATION
U.S. Customs and Border Protection and The General Administration of China Customs steadily pressed ahead the cooperation on AEO mutual recognition and C-TPAT joint validation. The U.S.-China AEO MRA text continues to be a work in progress. Twenty-four Chinese enterprises were jointly validated in 2016 on behalf of the U.S. C-TPAT Importers. Both sides will continue the cooperation on AEO mutual recognition and C-TPAT joint validation in an effort to conclude the signing of an AEO MRA once the MRA Text has been agreed.
U.S.-CHINA CONNECTED CAR COOPERATION
China and the United States welcome the connected-vehicle technology industry-government exchange conducted under the JCCT Information Industry Working Group held in Beijing on July 1, 2016. The two sides recognize the value of continuing to discuss connected vehicle technology development issues and potential areas of collaboration with each other by utilizing existing dialogue mechanisms.
ADMINISTRATIVE LAW DIALOGUE
The United States and China held a productive joint exchange on administrative law issues, including those arising in the sub-central level of government, in Washington, D.C., and Annapolis, Maryland in May 2016. The two sides will continue their joint exchange on administrative law issues in China in 2017 to discuss administrative law topics of interest to our business communities.
HEALTHCARE TRADE MISSION TO CHINA
With the goal of promoting healthcare trade between the United States and China, the U.S. Department of Commerce Deputy Secretary and the U.S. Department of Health and Human Services Deputy Secretary led a U.S. healthcare company delegation to Beijing and Chongqing on October 16-21, 2016, and held productive discussions with various Chinese ministries.
Cooperative Activities
DIGITAL TRADE COOPERATIVE EVENT
The JCCT Digital Trade Cooperative Event was held at the Department of Commerce on Tuesday, November 22 in Washington D.C. The event was opened by the U.S. Secretary of Commerce Penny Pritzker, U.S. Trade Representative Michael Froman, and Chinese Vice Premier Wang Yang. Following opening remarks, two expert panels from U.S. and Chinese industry discussed opportunities in the burgeoning digital trade economy, the enabling environment necessary for digital advancements, and standards development for digital technologies.
BUSINESS LEADERS ROUNDTABLE
The 2016 JCCT included a Business Leaders Roundtable that convened U.S. and Chinese business leaders and U.S. and Chinese government officials to discuss corporate evolution in a rapidly changing global environment. The Roundtable addressed the necessity and benefit of corporate evolution including responses to the challenges of new technology, compliance with applicable laws and regulations, and structuring enterprises for success. The Roundtable also discussed the appropriate role of government in facilitating industry adaptation.
FOOD SAFETY EVENT
The food safety event focused on food safety and was co-sponsored by the U.S.-China Business Council and the China Council for the Promotion of International Trade, in coordination with the U.S.-China Agriculture and Food Partnership. Building upon similar industry events held at the 2014 and 2015 JCCTs, this year’s engagement highlighted the cooperation between government and industry on advancing mutual food safety goals, demonstrating the value of public-private dialogue and partnerships in food safety and their importance to human health as well as global trade. The event included important topics such as strengthening consumer protection and enhancing public confidence in the food chain, transparency and food safety regulation implementation, plus best practices in preventing and responding to food safety incidents.
STRATEGIC SESSION
The 2016 JCCT included a Strategic Session that convened U.S. and Chinese government officials and experts to discuss “Digital Trade: Delivering Broad Based Growth through the Digital Economy.” The Session’s main objective was to highlight the contribution to global economic growth that can be realized by empowering digital industries. Two U.S. and two Chinese experts shared their insights on topics regarding the digital economy in China and United States and offered suggestions to both governments. After hearing from the experts, senior U.S. and Chinese Government officials engaged in a productive, in-depth discussion of these issues including suggestions for future possible government and private sector initiatives.
Cooperative Agreements between Government Agencies
During the 27th JCCT, U.S. and Chinese agencies signed the below cooperative agreements.
AFRICA CENTERS FOR DISEASE CONTROL MOU
The U.S. Agency of International Development (USAID), the U.S. Department of Health and Human Services, the U.S. Centers for Disease Control and the Ministry of Commerce of China, the National Health and Family Planning Commission of China signed the “Memorandum of Understanding on Africa Centers for Disease Control."
“MEMORANDUM OF UNDERSTANDING IN SUPPORT OF U.S.-CHINA TRADE COOPERATION”
The Ministry of Commerce of China, and the U.S. Trade and Development Agency signed the “Memorandum of Understanding In Support of U.S.-China Trade Cooperation.
