Chinese theft of U.S. intellectual property costs almost one million U.S. jobs and caused $48 billion in U.S. economic losses in 2009 alone.
Last week, the U.S. International Trade Commission released a report that once again confirmed what most people know - China's mercantilist economic practices continue to inflict significant damage on the U.S. economy. The report quantifies the substantially deleterious effects of Chinese IPR infringement and indigenous innovation policies that largely block U.S. firms from China's enormous government procurement market. These policies cost the U.S. IP-intensive economy that conducted business in China in 2009 an estimated $48.2 billion in sales, royalties, or license fees, according to the ITC. Moreover, the Commission found that if China raised its IPR protection and enforcement efforts to comparable U.S. levels, this would translate into approximately 923,000 new jobs for U.S. IP-intensive firms. These figures reinforce the need for policymakers to press China to meet both the letter and the spirit of commitments it made in joining the World Trade Organization-including steps such as abandoning its currency manipulation and adhering to its ten-year-old promise to accede to the Government Procurement Agreement.