Introduction

One of the most frequently aired concerns about China's accession to the WTO has been that China will not be able to implement the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPs) so as to ensure that foreign IP right holders will be able to enforce their rights effectively. While those concerns relate to most of the areas of intellectual property covered by the TRIPs Agreement, one of the biggest areas of concern continues to be whether the Chinese government will be able to reduce the pervasive practice of copyright and trademark counterfeiting that exists in China. This chapter deals with the Chinese government's implementation of those provisions of the TRIPs Agreement that relate to trademarks and to the problem of trademark counterfeiting.

Trademark laws, like other intellectual property laws, are relevant to international trade because of the effect that uneven or inadequate protection has on competition. In a market with effective IP protection, manufacturers compete against each other on the basis of quality and price.