Working in cooperation with foreign firms in China, the Chinese government will institute a foreign quality brands protection system in an effort to combat counterfeit foreign brands in the country.

In March 2000, the Quality Brands Protection Committee (QBPC), under the China Association of Enterprises with Foreign Investment, was set up with the authorization of the Chinese Ministry of Civil Affairs.

Since its establishment, the QBPC has been cooperating with China's central and local departments at all levels and other non- governmental organizations to cope with counterfeit products. So far, the QBPC has 92 member enterprises, all foreign ones whose investment in China exceeding the 30-billion-US-dollar mark and covering a variety of fields including autos, pharmacy, cosmetics, food, beverage, IT and household electronic appliances.

A survey made by the QBPC in July last year showed that counterfeit foreign brand products of QBPC's member firms covered 25 percent of those enterprises' market share in China.

Another survey conducted by the Development Research Center of the State Council in 2003 indicated that the loss caused by making and marketing counterfeit products to China's revenue in 2001 was as high as 30 billion yuan (about US$3.6 billion).

After four years' efforts by the QBPC in support of the Chinese government to protect intellectual property rights, an effective communication channel between foreign businessmen and the Chinese government has been established.

"Inviting foreign firms to join in China's drive against counterfeit products has not only effectively protected those foreign brands but played a crucial important role in improving China's ability to protect intellectual property rights and standardize the market economic order," said Liu Zhiben, deputy managing director of the QBPC.

In recent years, China has made substantial efforts to standardize market order. Since 2001, over 50 rules and regulations have been issued by the State Council on production and marketing of counterfeit and shoddy products.

In September 2003, a regular mechanism of quarterly meetings between foreign firms and the central government was introduced on a proposal of Chinese Vice Premier Wu Yi, to discuss measures to protect intellectual property rights.

Although China has greatly improved its ability to combat counterfeit brands in recent years, it is still not adequate and efficient to deter all such illegal behavior in China, added Liu.

"So the QBPC calls on all of China's public security institutions, Custom departments and other administrations services to pitch in this drive," Liu said.

"We also call for worldwide communication and cooperation between governments, and governments and enterprises," said Zhang Wei'an, chairman of the QBPC.

"Only by working in close cooperation can we accomplish a win- win result for both domestic and foreign enterprises," said Zhang. "As the rampancy of counterfeit foreign brands in China's market will not only impair the genuine brands but also impede good quality domestic brands."

(Xinhua News Agency April 19, 2004)