Respected Chinese official to lead trade talks

When the U.S.-China Joint Commission on Commerce and Trade (JCCT) meets Tuesday, the Chinese delegation will be headed by Wu Yi, a highly respected vice premier whose presence reflects the importance that China's government attaches to the talks, according to observers.

With the issues of intellectual property (IP) protection and market access again at the top of the agenda for the JCCT talks, Wu's involvement signals two things, said David Wolf, president and chief executive officer of Wolf Group Asia, a consulting company in Beijing. "One, the [Chinese] government is taking this seriously, and two, they have a point of view that they want to be heard and acknowledged at the table when they have these discussions," he said.

"She is an outstanding negotiator and she has the respect of everyone that she's going to deal with in Washington," Wolf said.

A former vice mayor of Beijing, Wu once headed China's Ministry of Foreign Trade and Economic Cooperation (MOFTEC) and played a key role in negotiations with the U.S. over China's entry into the World Trade Organization (WTO). MOFTEC was replaced by the Ministry of Commerce in 2003.

Wu is likely to convey the message that China recognizes the importance of improved IP protection in China, but this cannot be used as an excuse to protect foreign monopoly interests, Wolf said.

"She's going to say 'We're happy to comply, but not to the point where we're creating a channel for foreigners to siphon vast sums of cash out of China without leaving value here as well,'" he said.

The JCCT talks play an important role in U.S.-China trade relations.

The commission was established in 1983 as a forum for the U.S. and China to resolve trade concerns. Recent meetings have been held annually, bringing together top trade officials from both sides for talks on a range of matters, including the protection of IP rights and access to Chinese markets for U.S. companies.

The U.S. delegation at the JCCT talks will be headed by U.S. Commerce Secretary Carlos Gutierrez and U.S. Trade Representative Rob Portman.