NEMA says China's WTO compliance is still lacking.

Press Release Summary:

According to NEMA, which submitted comments to Office of U.S. Trade Representative, China needs to keep strengthening its anti-counterfeiting measures and enforcement. Also, while NEMA members have been able to obtain China Compulsory Certification Mark, process is expensive and requires unnecessary duplicate testing. Some members have observed competition from extremely low-priced Chinese imports, and are concerned that Chinese government may be subsidizing purchase of raw materials.

Original Press Release:

China's WTO Compliance Still Lacking, NEMA Says

(Rosslyn, Va.) September 23, 2008- The National Electrical Manufacturers Association (NEMA) recently submitted comments to the Office of the United States Trade Representative (USTR) on China's compliance with its commitments as a member of the World Trade Organization. The comments were submitted as part of an annual USTR review.

As the association of electrical and medical imaging equipment manufacturers, NEMA sees Beijing's compliance still lacking on several fronts such as:

Counterfeiting: China needs to keep on strengthening its anti-counterfeiting
measures and enforcement. NEMA has fundamental, ongoing concerns about intellectual property protections in the People's Republic, with its members all too often victimized by repeated, vast trademark infringement and piracy. In this respect, the Association has strongly supported Washington's World Trade Organization case against China's anticounterfeiting laws.

The China Compulsory Certification (CCC) Mark: While NEMA members have been able to obtain this mark, the process is expensive, requires unnecessary duplicate testing, and is time-consuming. Further, for most electrical items the CCC only accepts goods built to either Chinese national (GB) standards or "international" norms that do not include products built to U.S. requirements. Moreover, the exemptions process - particularly for components entering China that will soon be leaving again as part of finished goods - needs to be improved, and Chinese authorities should agree to accept data from internationally recognized testing laboratories.

Potentially "Subsidized" Product Coming Into the U.S.: Some Companies members have observed competition from extremely low-priced Chinese imports, and are concerned that the Chinese government may be subsidizing the purchase of raw materials and/or providing them below cost via state-owned enterprises.

Medical Devices: China's frequent lack of state-of-the-art standards often makes it necessary to comply with old and new versions of norms. Beijing has also not yet followed through on its 2006 Joint Committee on Commerce and Trade commitment to eliminate duplicative approval requirements.

Transparency in the Development of Regulations and Standards: NEMA enjoys excellent working relations with Chinese counterparts. Nevertheless, Beijing should adopt a formal public consultation process that features proper notification of emerging requirements, with suitable opportunity for comment by all interested parties, and an appropriate transition period before implementation.

The full comments can be viewed at

NEMA is the trade association of choice for the electrical manufacturing industry. Founded in 1926 and headquartered near Washington, D.C., its approximately 450 member companies manufacture products used in the generation, transmission and distribution, control, and end-use of electricity. These products are used in utility, medical imaging, industrial, commercial, institutional, and residential applications. Domestic production of electrical products sold worldwide exceeds $120 billion. In addition to its headquarters in Rosslyn, Virginia, NEMA also has offices in Beijing, São Paulo, and Mexico City.

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