MAY 15, 1996
Charlayne Hunter-Gault gets the Chinese reaction to the sanctions from the Ambassador to the People's Republic of China to the United States. He says the Chinese leadership is indignant and angry that U.S. trade representatives give up on negotiations meant to resolve the trade dispute.
CHARLAYNE HUNTER-GAULT: Joining us now is Li Daoyu, the ambassador of the People's Republic of China to Washington. Mr. Ambassador, thank you for joining us. How do you respond to Ms. Barshefsky, that China has not met its obligations and promises to the United States?
LI DAOYU, Ambassador, China: I think, I think that's not true to say that China fails to implement the agreement because I think China has done its best in implementing the agreement. And we have in that enacted a whole set of laws and regulations and the court of justice is responsible for the enforcement, and we launched investigations over 4,000 cases, and we confiscated and destroyed 2 million CDs and LP's, and 80,000 of cassettes and video tapes and 40,000 software, so, you know, all these piracies are, you know, confiscated and destroyed, and the--about the CD and LP factories, whenever we found piracy there, and we will punish them, including shutting down, so the seven factories that Barshefsky just mentioned were closed down for reasons of piracy. It's not only of the pornography, so we, we sent two inspectors to each factory to see if there is any piracy. Whenever piracy is found, the factory concerned will be punished, including closing down.
CHARLAYNE HUNTER-GAULT: Well, did you understand when she said that there were four conditions that existed in the agreements that were negotiated 14 months ago that China had simply not met, you just totally dispute that?
AMB. LI DAOYU: I think we have, I think we have sincerely and effectively implemented agreement.
CHARLAYNE HUNTER-GAULT: And she also said that there was some evidence that in some of the factories there was some government involvement in the factories that were making pirated products.
AMB. LI DAOYU: No, I would reject that allegation, that no involvement at all, because, you know, what our government is doing is fighting against very hard the piracies, and I think I will, I can give you an example if I can say that this is like drug problem. The drug problem is serious here in the United States, and I think your government is fighting very hard against that, and but the drug is still rampant, so could I say this because of, you know, any failure of your government policy or a failure of your implementation or any involvement of a government, I cannot say that.
CHARLAYNE HUNTER-GAULT: Well, you heard Ms. Barshefsky say, acknowledge that she felt the problem was a difficult one, but at the same time, she said that when you have moved to close down pornography factories and so on, you've moved with much more dispatch and with much more effectiveness, and that you haven't done that same kind of action with these piracy factories.
AMB. LI DAOYU: Yes. I think we--we are--we have closed down the seven factories on account of their piracy, so we are still--we still stand ready to investigate any complaint. If there is any piracy done in any factory, we will punish them, including closing down, so if the USA thinks that are more factories doing piracies, so let's discuss case by case, and China would like to investigate and after its investigation, only after investigation and hard evidence is found then we can, you know, punish them. You know, you can't punish the factory without any evidence.
CHARLAYNE HUNTER-GAULT: Well, how is China reacting to today's announcement by the United States of these sanctions?
AMB. LI DAOYU: Yes, we, we, I think--this retaliation listed by the U.S. side has made the Chinese people and the government very angry. I could say even very indignant because it's to our extreme disappointment and regret that the U.S. side gave up negotiation, gave up dialogue, which is the only reasonable way to solve differences, so I admit that we do have differences in implementing--in understanding or interpreting the agreement or, in, in looking at the facts so--
CHARLAYNE HUNTER-GAULT: Why is that? Why is there--I mean--
AMB. LI DAOYU: --negotiations--need consultation. So, so--and then I think what we need is consultation and the negotiation and retaliation will get nowhere.
CHARLAYNE HUNTER-GAULT: Well, China has slapped sanctions back on the United States. Is this going to escalate the problem, or how is this going to affect getting to a solution?
AMB. LI DAOYU: We have repeatedly warned the U.S. side, so retaliation will get nowhere, and it will only worsen and poison the relations, especially causing heavy losses economically to both sides, so--but the United States insists on that kind of approach, so China has to protect its own interest, and we also have our trade law to import, so according to our trade law, we have to issue a counter-retaliation--so that's what we have done.
CHARLAYNE HUNTER-GAULT: So how is--you say that these kinds of things poison the waters--how is this going to, uh, get played out? Is a trade war going to start, or do you think something can happen between now and June 17th, when the sanctions go into effect?
AMB. LI DAOYU: Uh, I think it is--it cannot be said as a trade war but it could be said that China is victimized by the United States on, on this point, you know. We are the victim, and what we are doing is we try to protect our interest.
CHARLAYNE HUNTER-GAULT: Well, can this be worked out before the sanctions go into effect, do you think?
AMB. LI DAOYU: We always insist that the only reasonable way to solve differences on the IPR [Intellectual Property Rights] issue is negotiation, dialogue, on equal footing, and in the spirit if mutual respect.
CHARLAYNE HUNTER-GAULT: Is there any indication that this can happen?
AMB. LI DAOYU: So we have no change on this, and what the U.S. should do is to change its course of action, to change confrontation to negotiation.
CHARLAYNE HUNTER-GAULT: Or, or what's going to happen?
AMB. LI DAOYU: If the, if the confrontation goes on, I've said the relations will be poisoned and the relations will be worsened, and, and, and I think this will affect the whole relationship at the very critical point, and, and as Amb. Barshefsky just said, the American policy is in full engagement with China, but we want to see words be translated into deeds.
CHARLAYNE HUNTER-GAULT: Thank you, Mr. Ambassador.