The Chinese says that US attempts to get intellectual property piracy of goods like movies and software “seriously damage” bilateral co-operation and harm business ties" according to the FT. The US government is taking its complaints to the World Trade Organisation.

The Chinese reponse to the US action is based on the fact that they thought they had a deal with the Bush Adminstration to handle the issues of piracy based on a handshake and a promise. The Chinese say they are cracking down but it appears to be little more than a show for the camera.

The MPAA says that the movie industry losses $2.3 billion to piracy in China each year. The amounts lost by software companies like Microsoft (MSFT) are probably much larger.

But the Chinese want to cry a river over US attempts to stop it.

Douglas A. McIntyre