As the Deputy Assistant Secretary of the Department of Commerce, Henry Levine's statement to the "Congressional -Executive Commission on China sheds light on the efforts and intentions of the U.S. government on helping the Chinese attack on IPR infringement. As bilateral merchandise trade reached nearly $150 billion by 2002, U.S. commerce has started to feel the effect of large scale Chinese piracy of its goods. Indeed, American manufacturers complain about rampant piracy of intellectual piracy and trade barriers. Despite China's commitments to cracking down, rampant piracy, fake CDs, DVDs, and pharmaceuticals cost the U.S. an estimated $20-$25 billion annually. In fact, the Business Software Alliance estimates that software piracy rates in China exceed 90%. In response, the U.S. continues to evaluate and monitor China's IPR apparatus through the annual Special 301 process, and has begun certain proactive measures to stem the piracy. The Department of Commerce has organized a series of seminars with Chinese officials conveying US views on how best to increase criminal enforcement of IPR violators.

Mr. Levine's statements illustrate the influence U.S. corporations have over foreign trade policy and the ways in which they seek to protect their goods in foreign markets. This approach differs greatly from the view and approach of the Chinese culture towards copyright infringement and the spirit behind ownership and may explain some of the chasm between U.S. and Chinese policy and enforcement. Mr. Levine's statements will help illustrate not only the scale of the Chinese piracy but also other means by which the U.S. government seeks to proactively aid the Chinese government besides trade sanction threats and lobbying for further WTO compliance.