A victory in fair trade

Last month's decision by the United States Supreme Court not to re-examine a lawsuit won by Chinese battery producers will help boost the confidence of China's US-bound businesses in their battle against an increasing number of "Section 337 Investigation" cases filed by their US counterparts.

Conducted by the US International Trade Commission, section 337 investigations most often involve claims regarding intellectual property rights, including allegations of patent infringement and trademark infringement by imported goods.

The Energizer Battery Company and its subsidiary, Eveready Battery filed a complaint with the Trade Commission against seven Chinese battery producers, charging them with patent infringement of their mercury-free alkaline batteries. Energizer appealed the Trade Commission's ruling in favor of the Chinese companies in court, resulting in a six-year lawsuit.

The decision by the Supreme Court on March 23 is a big victory for Chinese businesses being plagued by a growing number of similar accusations.

The growing market share that Chinese battery producers, including Sichuan Changhong, Fujian Nanfu, Ningbo Shuanglu, have taken in the US in recent years led to Energizer and Eveready filing a complaint in May 2003 with the Traded Commission, charging the seven Chinese battery producers with patient infringement. Besides anti-dumping, anti-subsidy and exchange rate issues, this is yet another tool being used by US businesses to attempt to curb the marketability of Chinese imports.

According to Chinese Ministry of Commerce statistics, Chinese companies have been the most frequent targets of the "337 investigation" in the US since 2002. Last year alone, there were 12 such cases filed against Chinese companies, and they constituted 50 percent of the total cases filed by US businesses that now use the "Section 337 Investigation" as the most effective means to fend off Chinese imports into the US market.

Japan and South Korea had the same experience during their periods of rapid economic development. Since China joined the WTO, Chinese businesses are increasingly integrated into the global market.

Chinese businesses should try to master as many international trade rules as possible, including "Section 337 Investigation", to foil any attempts to curb Chinese imports.

www.gmw.com.cn

(China Daily 04/13/2009 page2)