Intellectual property rights protection becomes one topic discussed at the 2005 Fortune Global Forum in Beijing on May 18,2005.

       To effectively curb the infringement of intellectual property rights (IPR), a fair and just international law that takes into account the realities of different countries must be established, according to Wang Jingchuan, commissioner of China's State Intellectual Property Office.
        In a speech delivered at the 2005 Fortune Global Forum that concluded in May, Wang said, "A harmonious environment encouraging dialogue rather than confrontation, co-operation rather than disputes" was particularly necessary.
        "As a latecomer in the global campaign on IPR protection, China has made rapid progress and established a legal and administrative protection mechanism in line with its realities," he said.
        Government efforts alone were not enough to solve the difficult issue, Wang said, adding, "The IPR protection awareness of the people must be improved fast."
        He also called on the international community to give those developing countries that aremaking an effort in this regard more time and opportunities to improve.
        Calling IPR infringement "a historic and global issue," Wang said even countries that have had copyright and intellectual property protections in place for more than 100 years could not stop infringement completely.
        "Only when IPR protection measures suit the development level of a country's productivity and are constantly updated to meet its economic demand can positive impact be achieved," he said.
         Wang reiterated the country's determination to combat piracy and develop IPR protection systems. He said that over the past two decades, the Chinese government has always balanced the interests of IPR owners, users and the general public.
        "The better we can handle such a balance, the more effective our IPR protection efforts will be," he said.
        Although China's IPR system was established a mere 20-odd years ago, it has already made great progress, Wang added.
        For example, China's General Principles of the Civil Law and Criminal Law include provisions for the protection of IPRs. Furthermore, IPR violators can face up to seven years in prison.
        "As I understand it, it is the most severe penalty in the world," Wang said.
        The National IPR Protection Team, headed by Vice Premier Wu Yi, was set up in May 2004. Its purpose is to co-ordinate law enforcement in the country's different regions and departments. Last September, a special campaign was launched targeting IPR violations in the areas of patents, trademarks and copyrights.
         In order to deal with IPR issues more effectively, Wang said that his team keeps abreast of developments around the world by exchanging information and opinions with multinational companies and foreign enterprises in China.
         "China is not the only country that has fallen victim to IPR infringement," Wang added.
Protecting IPRs in a reasonable and effective manner is a global issue, and he urged greater international co-operation.

          Foreign governments and companies should also strengthen co-operation and activelyprovide solutions to combat piracy and protect IPRs in China, participants said during a panel discussion of China's intellectual property issues.
          IPR protection was one of the China-related topics discussed at the 2005 Fortune Global Forum in Beijing. According to David Frazee, a shareholder of Greenberg Traurig, industries such as film, entertainment and pharmaceutical manufacturing are victims of piracy in China.
         Representatives of foreign companies and organizations attending the Fortune Global Forum also acknowledged the Chinese government's efforts to protect IPRs.
         Jeffery Kindler, vice chairman of Pfizer Inc, said it was quite inspiring that Chinese government at all levels has sent the public positive signals by showing resolve in protecting IPRs.
         Meanwhile, more Chinese companies have realized that they themselves need to protect IPRs, which is great progress, Kindler said.
         But he thinks fighting IPR infringement remains an arduous task for China.
         As a leader of a century-old pharmaceutical enterprise, he expected the Chinese government to exact more severe punishments on people involved in making and selling fake drugs.
         He also spoke positively about the Chinese government's efforts, saying the situation was encouraging.
        "Compared with the United States and the European Union, China has not been fighting the IPR issues for very long and it has had to start from scratch, but it has already made progress," Kindler said.
         Kindler regards fake medicines as a major threat to the industry, urging more law enforcement against producers of fake goods.
         Dan Glickman, president and CEO of the Motion Picture Association of America, said that China has achieved significant progress in IPR protection, especially since entering the World Trade Organization (WTO).
        Piracy is not a problem solely confined to China, as it also exists in the United States, Europe and the rest of the world. Therefore, it is not helpful to simply lay all the blame on China, Glickman said.
        Using film as an example, Glickman suggested focusing on market entry points to combatpiracy.
        Chinese people can buy thousands of pirated DVDs on the streets, but only 20 or so foreign films are distributed to Chinese cinemas each year, he noted.
        David Chang, CEO of Phillips Electronics China, said that the company appreciates the Chinese government's efforts in the fight against piracy and encouraged more experts and the public to join the battle against IPR violation.
        He set forth a principle of technology and knowledge-sharing.
        Phillips Electronics has to date co-operated with several Chinese universities to set up three intellectual property schools.
        "We hope to train more IPR professionals and help IPR protection in China accordingly," he said.
        The company's efforts have begun to reap rewards. In early May, the company won a case against a man who produced fake copies of some of its lighting products. The violator was sentenced to 4-5 years in prison.

           FUZHOU: China's largest auto glass manufacturer, the Fuyao Glass Industry Group, has become the nation's first glass maker to supply goods to global car production giant Audi Group.
           Fuyao will export windscreens for about 50,000 cars from the 50th week of this yearto the German auto maker, according to an agreement inked on June 1 between the two groups. Audi produced 800,000 cars last year.
           The arrangement marks a major breakthrough for the nation¡¯s auto glass manufacturing industry -- a Chinese auto glass maker, adhering tointellectual property rights, has finally crossed the technical barrier between domestic players and vehicle design standards fixed by the international car industry.
            The export figure is expected to gradually increase as Fuyao bids for other Audi projects in the near future, said Cho Tak-wong, Fuyao's chairman and CEO.
            Along with co-operating with Audi, considered by auto industry players to demand the highest requirements for auto glass in the world, the agreement means China's auto glass manufacturing sector has finally established its first international brand, Cho said.
          In additoin, the company has created a new way for its Chinese counterparts to go global, added Cho.

          "Fuyao has been waiting for today for 18 years," he said.

          "With its competitive quality and price, Fuyao has the ability to offer products not only for Audi in China, but also our production in Germany," said Audi's Vice-President Karlheinz Hell.
            The company is currently the sole glass supplier for Audi's production facilities in China.

Fuyao is ranked as one of the top 50 suppliers for Audi in China, Hell added.

Karlheinz Hell ,Audi's Vice-President(left)and Cho Tak-wong,Fuyao's Chairman and CEO at the agreement signing ceremony.HU MEIDONG          

             Hell told reporters that Audi now spends about Euro$100 million every year on glass purchases, a figure predicted to increase by 30 to 40 per cent when Audi¡¯s annual production capacity rises to one million in the coming years.
            "I believe Fuyao will grow with us and take a good share of this cake," Hell said.
            Having experienced positive co-operation with China's suppliers in recent years, Audi regards China as an important part of its global purchasing network, said Hell.
            As one of the nation's main luxury car makers, Audi now produces about 600,000 A4 and A6 cars a year in Changchun, the capital of Northeast China's JilinProvince.
            Along with Audi, Fuyao has supplied products to such global auto giants as Korea-based Hyundai, US-based GM and Japan-based Mitsubishi and Isuzu since 2003.
            Located in Fuqing in FujianProvince, Fuyao is the sixth largest auto glass manufacturer in the world, taking 10 per cent of the auto glass component market share in the United States.
             Fuyao also occupies 52 per cent of the market share in the domestic OEM market and 60 per cent of the nation's auto glass exports, with an annual export foreign exchange of more than US$70 million.

          Local and foreign businesses planning to participate in the ninth China International Fair for Investment and Trade (CIFIT) have responded enthusiastically to the fair¡¯s online project application system, according to the organizing committee.
           So far, the committee has collected more than 11,000 project applications, including at least 400 from overseas.

The project matchmaking forum has become an important part of the fair since it was first held at the seventh session of CIFIT in 2003, said Zeng Junsheng, project division chief with the China (Xiamen) International Investment Promotion Centre.
            Last year, the organizing committee created an online project application system on the fair¡¯s official website, where all pending projects are may be viewed.

The influx of applications has been steady since April, with about 200 new projects being logged on the system everyday, Zeng said.
            Zeng told Express that the current crop of applications mainly focus on infrastructure, service and trade, agriculture and petrochemical projects. Most of these originate from Fujian, Sichuan, Jiangsu and Zhejiang provinces, which put the application system into use early.
            The number of such projects is expected to increase rapidly over the next two months, Zeng added.
            The majority of overseas projects received so far have been submitted by the governments and investment promotion agencies of such participating countries and regions as Southeast Asia, Africa, Europe and the United States.
            Most of the projects contracted during the past two CIFIT

The investment projects match-making symposium in the eighth CIFIT in 2004.

sessions have operated as joint-ventures or co-operative enterprises, according to Zeng. But starting last year, more and more investors have indicated an interest in projects with sole proprietorship.
           As the quality of the projects has gradually improved, the committee has upgraded the application system and introduced a new option allowing those submitting projects to explain their favourable local investment policies and trends in local industrial development.
           Statistics from CIFIT¡¯s organizing committee indicate that 1,496 projects were contracted at last year's fair, recording a total investment of US$14.9 billion and a utilized overseas investment of US$11.58 billion.

1. Putian Mazu Cultural Town

         Total investment: US$175 million
         Intended mode of investment: Co-operative and sole proprietorship
         Summary of the proposed project: The project, which will depict Mazu culture, involves construction of a new city at MeizhouBay. The cultural centre will consist of a recreational section, seaside resort, culture and historic relic section, service section, fishing dock, yacht pier, the ZixiaoCave scenic area and a seaside recreational scenic belt. The entire US$175 million investment figure will be spent on reclaiming land from the sea. Other investment amounts will be in accordance with the planning of each functional section.


2. MountWuyi National Holiday Resort

         Total investment: US$9 million
         Intended mode of investment: Co-operative and sole proprietorship
         Summary of the proposed project: MountWuyi was listed as a World's Heritage Networkby UNSECO in 1999, one of four World Natural and Cultural Heritage sites in our country. The resort will consist of three functional areas: the MountWuyiWorldCulturalHeritagePark, the Mount Wuyi Display and Performance Centre of World Cultural Heritage, a Folklore Customs Street (including a Wuyiyan Tea Centre) and other relevant service facilities.


3. Sichuan Information Professional Technology Institute

          Total investment: US$6 million
          Intended mode of investment: Co-operative and joint-venture
          Summary of the proposed project: Structures to be built include one synthesis building, six student apartments, one stadium, one administrative building, one classroom building, two student cafeterias and one large ceremonial hall, among others. The project will cover a combined floor space of approximately 70,000 square metres and, after completion, will


accommodate 6,000 students. An investment recoupment period of eight years is estimated.


4. QingdaoShinanSoftwarePark

         Total investment: US$100 million
         Intended mode of investment: Co-operative, joint-venture and sole proprietorship
          Summary of the proposed project: QingdaoShinanSoftwarePark is a ¡°software industry base of the National Torch Programme¡± as formally announced by the Department of Science and Technology. The project will cover an area of 126,000 square metres, with a floor area of about 260,000 square metres. This project is one of the key construction projects in Qingdao.


5. Thick Float Glass Production Line

        Total investment: US$59.83 million
         Intended mode of investment: Co-operative, joint-venture and other
         Summary of the proposed project: This project involves building a production line capable of providing a daily output of 700 tons of float glass by introducing mature industrial technology and advanced facilities from abroad, including a melting furnace, tin pot, leer, blending system and cold end cutting and stacking equipment.


6. Modern Phoenix Mountain Farm Field

          Total investment: US$80 million
           Intended mode of investment: Co-operative, joint-venture and sole proprietorship
           Summary of the proposed project: The project involves constructing a modern PhoenixMountain farm field in the Chengde City Development Area with an area of 103,200 square metres. Plans call for ademonstration area, science and technology garden, industrial chain and a "green" village..



7. Pedestrian-Only SouthGarden Shopping Street

          Total investment: US$69.88 million
           Intended mode of investment: Joint-venture
           Summary of the proposed project:The proposed street, which will face a railway station in the east and Zhonghua Street in the west, is situated in the golden trading centre of Shijiazhuang, a superior location convenient to traffic. The project can accommodate up to 1,200 specially designed commercial shops and 9,118 hotel-type apartments. When the project reaches maturity, the annual rent will reach an estimated95 million yuan (US$11.478 million).


8. Bacon Hog Breeding Base

           Total investment: US$12 million
            Intended mode of investment: Joint-venture and co-operative
            Summary of the proposed project: The project consists of constructing a bacon hog breeding base with an annual output of 100,000 hogs, of which 60,000 will be for commercial use, 20,000 will be binary sows and 20,000 will be pure breeding pigs. After completion, the project will reach an estimated annual sales revenue of US$ 8.8 million and a total profit of US$ 2.9 million.


9. LishanMountain Sightseeing Resort

          Total investment: US$8 million

           Intended mode of investment: Other
            Summary of the proposed project:The project includes construction of the Lishan Ropeway, the Lishan Summer Holiday Resort, the Lishan Virgin Forest Tourist Reception Centre, the restoration of Emperor Shun¡¯s Temple and the Yaoshi Canal Scenic Spot. Construction of the project will improve existing complementarydining, lodging, transportation, sightseeing, shopping and recreation facilities. As the project will enhance visitors' enjoyment of the virgin forest and allow them to get closer to nature, it has a broad market appeal.

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