The announcement at the completion of the 21st annual meeting of the U.S.-China Joint Commission on Commerce and Trade (JCCT) on Wednesday highlighted progress on a number of major priorities for manufacturers. (U.S. Trade Representative news release, fact sheet)

A new system of ongoing working group engagement appears to have paid off in commitments on the part of China in areas that the National Association of Manufacturers has long emphasized. In one of the most important issues for U.S. companies, intellectual property (IP) protection, there is potentially significant progress for producers in the wind turbine, pharmaceutical, and software industries. China’s commitment not to discriminate against American IP in deciding what products or companies get preferences for government contracts could have significant impact for NAM members selling in the Chinese market.

In addition, the agreement to revise the major equipment catalogue (which governs what products qualify for special treatment in government purchases) and not to use it to discriminate against imports or provide export subsidies, is similarly a positive signal that China will play by the rules of the international trading system that has benefitted it so significantly.

China also made commitments that could further open their markets to U.S. industrial and telecommunications equipment, and agreed to accelerate the process of joining the WTO Government Procurement Agreement. This agreement has been a priority for the NAM as a way to open the door to billions of dollars in purchases by Chinese government entities.

All of this is good news. But long term, it all hinges on China’s implementation of these commitments.

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An addition to the Dispatch from the Front’s weekly schedule, a joint release from USDA, Commerce and the U.S. Trade Representative’s office, “Commerce Secretary Gary Locke and USTR Ronald Kirk Convene 20th Session of U.S.-China Joint Commission on Commerce and Trade in Hangzhou, China“:

WASHINGTON, October 21, 2009 — U.S. Secretary of Commerce Gary Locke and U.S. Trade Representative Ron Kirk will serve as co-chairs with Chinese Vice Premier Wang Qishan of the 20th session of the U.S.-China Joint Commission on Commerce and Trade (JCCT) held on Wednesday, October 28th and Thursday, October 29th in Hangzhou, China. U.S. Secretary of Agriculture Tom Vilsack will join this effort to address key U.S. trade and economic priorities. The 2009 JCCT marks the first time three Obama cabinet officials have traveled together to a key economic summit abroad.

The JCCT, established in 1983, is the main forum for addressing bilateral trade matters and promoting commercial opportunities between the United States and China.

“The first JCCT under the Obama Administration provides an important opportunity to engage China on trade concerns impacting American companies,” Secretary Locke said. “It is critical that we make progress on several priority issues, including intellectual property rights protection and enforcement, clean energy, medical devices and pharmaceuticals.”

More …

• USTR blog post, “Weekly Trade Focus: Joint Commission on Commerce and Trade“
• Dow Jones, “US To Press China On Intellectual Property Rights, Trade“
• Bloomberg, “China Talks Showing ‘Good Progress’ Before Meeting, Locke Says“
• AFP, “US seeks progress in high level trade talks with China”
• People’s Daily Online, “Protectionism may be key component to trade summit“