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How the US Lost Its China Complaint On IP

An anonymous reader writes "The World Trade Organization yesterday released its much-anticipated decision involving a US complaint against China over its protection and enforcement of intellectual property rights. The US quickly proclaimed victory, with newspaper headlines trumpeting the WTO panel's requirement that China reform elements of its intellectual property laws. Yet the reality is somewhat different. As Michael Geist notes, the US lost badly on key issues such as border measures and criminal IP enforcement, with the international trade body upholding the validity of China's laws."

39 of 167 comments (clear)

  1. Good by Anonymous Coward · · Score: 2, Insightful

    IP laws are ridiculous imho.

    1. Re:Good by betterunixthanunix · · Score: 2, Interesting

      IP laws are the reason the GPL works.

      Seriously, with IP, the US would not be relevant in the global economy. IP is a major export from the US, and without it, we could not possibly sustain an economy based on producing goods in other countries.

      What is ridiculous is the tolerance the government seems to have for IP abuse.

      --
      Palm trees and 8
    2. Re:Good by wintermute000 · · Score: 2, Insightful

      You mean: many people everywhere is guilty of violating them, esp. in countries where the cost of software is a much greater proportion of income than in developed countries.

      I do not know anybody that does not pirate software who is aware how to (i.e. asking someone for a copied CD). And yes I live in a developed country (Australia) that has signed on to your draconian DCMA provisions (thanks 'Free' Trade Agreement, great negotiating there boys).

      People in glass houses and all that.... if there is a geek out there who has never copied a single mp3 or divx or whataever (and that includes the old fashioned tape recorder copies) then I'll be damned. All these self righteous 'i have never pirated and never will' postings are pure hot air

      the basic problem is that people will pirate if its easier, cheaper and more convenient than getting the official version. Like every other form of prohibited behaviour (any of the vices etc.) you do not get at the problem by enforcement, history has conclusively demonstrated this. You need to give people a compelling reason NOT to pirate and tip the price / convenience equation so that people will not bother pirating. Making it easy and convenient e.g. 5 dollar full HD downloads with no DRM off blazing fast servers, or new physical discs - I guarantee you it will work, at least better than the current model. Observe steam, amazon and the new itunes, all growing at gangbuster rates. Or how about that all you can eat music subscription model currently doing the rounds (very profitably too) in Korea? Even far out ideas e.g. $X tax per broadband connection, download whatever you like.

      As for software, we all know 1k for office is stupid, and pls do not turn this into another open source advocacy thread (and yes, I run linux at home)

    3. Re:Good by hedwards · · Score: 2, Interesting

      You mean: many people everywhere is guilty of violating them, esp. in countries where the cost of software is a much greater proportion of income than in developed countries.

      So then it's OK for the developed world to subsidize software that people don't really need in the first place?

      The Chinese government currency manipulates to take American jobs, invest in the US to avoid paying it's workers a decent wage, and somehow they're entitled to free ride on my purchases.

      I'm sorry, I'm not really seeing the justification. I could sort of understand if it were something like medicine or the means to grow food, but this is a set of items that for the most part can be replaced and are definitely not vital to life.

      And for non-China countries, there's still that last paragraph. I'm not sure what the point of pirating software is when there are more pressing things to do, and software programs for free that do just fine.

    4. Re:Good by DamnStupidElf · · Score: 2, Insightful

      IP laws are the reason the GPL works.

      If reverse engineering and unlimited copying were completely legal, the GPL would just be the default state of things. Removing obfuscation on code is pretty easy, pirates do it all the time. So is disassembly and reverse engineering. If it was legal, there would simply be no way to release proprietary software, short of massive NDAs and other explicit legal contracts. All other copyrighted/patented/trademarked things are easy to reproduce in fully functional form.

      What is ridiculous is the tolerance the government seems to have for IP abuse.

      No more ridiculous than the artificial limit of supply imposed on things that have a nearly zero cost of reproduction.

  2. why bother about their laws being implemented by crazybit · · Score: 2, Informative

    outside US borders?

    What's next? trying to push a world wide patriot act?

    --
    - Human knowledge belongs to the world
    1. Re:why bother about their laws being implemented by xero314 · · Score: 5, Informative

      why bother about their laws being implemented outside US borders?

      This is not about US laws being upheld on foreign soil. It's about two very specific international contracts between China, the US and many other countries. The two agreements in question are the Bern Convention and TRIPS. These are agreements the US and China both entered into voluntarily.

      The decision basically states that china is not fully compliant with the Bern Convention, but they are within the letter of the TRIPS agreement.

      Sometimes it not about the US trying to throw it's weight around, because sometimes countries have agreements they have to uphold just like individuals within a country.

    2. Re:why bother about their laws being implemented by A+Commentor · · Score: 2, Informative

      From the article, China only lost a minor copyright issue. China refused to recognized copyrights for articles that are "unconstitutional or immoral." The WTO said they needed to. All of the other complaints were dismissed.

      --

      Looking for any old 8-bit Heathkit/Zenith software/hardware - http://heathkit.garlanger.com

    3. Re:why bother about their laws being implemented by TubeSteak · · Score: 5, Informative

      This is not about US laws being upheld on foreign soil. It's about two very specific international contracts between China, the US and many other countries. The two agreements in question are the Bern Convention and TRIPS.

      From the TRIPS wikipedia link:
      TRIPS was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994. Its inclusion was the culmination of a program of intense lobbying by the United States, supported by the European Union, Japan and other developed nations.

      From the Bern Convention wikipedia link:
      The United States initially refused to become party to the Convention since it would have required major changes in its copyright law, particularly with regard to moral rights, removal of general requirement for registration of copyright works and elimination of mandatory copyright notice. This led to the Universal Copyright Convention in 1952 [as an alternative to the Berne Convention] to accommodate the wishes of the United States. But on March 1, 1989, in the U.S. "Berne Convention Implementation Act of 1988" came into force and the United States became a party to the Berne Convention, making the Universal Copyright Convention obsolete.

      The USA has always had a strong policy of exporting and forcing shitty laws (on)to other countries.

      --
      [Fuck Beta]
      o0t!
    4. Re:why bother about their laws being implemented by MaskedSlacker · · Score: 3, Funny

      that would be an agreement the US never agreed to, so no.

    5. Re:why bother about their laws being implemented by Hao+Wu · · Score: 3, Informative

      If you asked Britain in the 1800s, China had no right to refuse the "free trade" of importing opium no matter who it killed.

      Following China's defeat in the Second Opium War in 1858, China was forced to legalize opium and began massive domestic production. Importation of opium peaked in 1879 at 6,700 tons, and by 1906, China was producing 85% of the world's opium, some 35,000 tons, and 27% of its adult male population was addicted--13.5 million addicts consuming 39,000 tons of opium yearly. From 1880 to the beginning of the Communist era, the British attempted to discourage the use of opium in China, but this effectively promoted the use of morphine, heroin, and cocaine, further exacerbating the problem of addiction. - http://en.wikipedia.org/wiki/Opium#Prohibition_and_conflict_in_China

      For losing to the British invasion, China had to pay $15 million in restitution to British merchants, open their ports to the drug trade, and cede Hong Kong to Britain.

      But they were only enforcing trade agreements!

      --
      I suggest you read Slashdot
    6. Re:why bother about their laws being implemented by Snaller · · Score: 2, Interesting

      "These are agreements the US and China both entered into voluntarily."

      Of course its not the whole country who are behind this, its a tiny minority of (honest?) politicians who have signed this. A lot of people are against the ability to do a job once and then expect to get paid over and over for it again.

      --
      If Google really cared they would fix Android Chrome to reflow text, instead of discriminating
    7. Re:why bother about their laws being implemented by Cowmonaut · · Score: 2, Interesting

      In our defense, I don't think you should legislate morals. But that's all I can say I agree with. Removing a requirement to register your copyright, and mandatory copyright notices aren't a great idea IMO. Please note though, that in the case of TRIPS it wasn't just the US. Corporations generally don't belong to a country but will have a lobbying presence in many. Many EU nations and Japan are just as much to blame for TRIPS as the US and arguing otherwise just shows how biased you are.

  3. Sadly by longacre · · Score: 5, Funny

    WTO knows who its soon-to-be-daddy is.

  4. Re:Doesn't sound very American by chill · · Score: 4, Funny

    Hey, the Iraqi Information Minister needed to get a job SOMEWHERE!

    --
    Learning HOW to think is more important than learning WHAT to think.
  5. Communists don't believe in imaginary property... by gandhi_2 · · Score: 2, Interesting

    Do China's border measures, which allow customs officials to donate, auction, or sell to the rights holder confiscated goods, violate TRIPS?

    (FTFA)

    China can take your bootleg XP discs on grounds you pirated them...and then sell them? lolwut?

  6. the real problem is enforcement by Ritz_Just_Ritz · · Score: 5, Interesting

    I spend a great deal of time in China. The real crux of the problem is that there is a WIDE gulf between the law and enforcement of the law (unless it involves anti-government behavior...then the gulf narrows quickly).

    I can easily go to any one of hundreds of locations that I know of (and I'm a damn foreigner) in Beijing and buy openly pirated movies and software. Sure, it is illegal to sell that stuff per the law books, but the government just doesn't care. And when they make some noise about caring, it's VERY temporary, the press gets their story and photos, and then it's back to business as usual.

    Government officials are profiting directly from winking at this illicit trade so there's little incentive for those lower on the totem poles to rock the boat. It's not uncommon for the owner of one of these illicit DVD/CD fabs to bring in the relative of some party official in as a "silent partner" to keep the heat off. Welcome to China. Now be quiet and enjoy your 10RMB DVD (complete with fancy packaging and liner notes) that can be had in most subway stations and street corners in Beijing...er...roughly 7% of the price I'd pay at my local Best Buy for the same title in similar packaging.....

    1. Re:the real problem is enforcement by zappepcs · · Score: 4, Interesting

      There is the problem, full in your face style. No matter what trade agreements are agreed to, China is run differently internally than the USA or European Union countries. Going to the WTO is like asking a police officer to witness someone robbing your car all the while knowing that the police officer will not arrest the robber. I don't think anyone has a full grasp of what would happen if the US simply stopped doing business with China cold turkey style... So, this remains a problem.

    2. Re:the real problem is enforcement by Anonymous Coward · · Score: 5, Interesting

      Personally during my time in China, I liked the fact that DVD's were so cheap.
      From what I've heard, DVD companies initially tried selling DVD's in China for the same price they do in Western countries, and only the top business owners can afford that type of thing.
      China also has _far_ more problems that copyright infringement to get fixed first.
      During my time there as an English teacher, the boss I had (oh and this is at a school that is a business venture of a big foreign university!) took 150RMB off one of the Chinese girls that worked with me. She only got 1500RMB a month, often had to work 4 hours over time every day, and didn't get paid for it despite the law saying she should be.
      I went into my boss' office with a photocopy of the letter he'd given her saying he was taking 10% of her wages, because she had forgotten to sign her name in one day. Asked him what was up with it and got really pissed off at him, was close to walking out. I hate seeing others treated that way.
      I've thought about bringing this to the attention of the university that is in charge of the English school, but I doubt they'd do anything. It piss' me off that many institutions from rich countries criticize the treatment of workers in China, but go full steam ahead and exploit it themselves. Bloody hypocrites.
      I'm going to post this anonymously as at the moment I don't want to take any risks for when I go back there.
      Anyway, as I said, China has more issues to deal with than copyright infringement. Despite all the problems in China though, I recommend going there, I absolutely love the country, the food, and most of the people. If they could sort out the pollution problems I think it would be the most beautiful country on earth.

    3. Re:the real problem is enforcement by Rakshasa+Taisab · · Score: 3, Insightful

      I guess what would happen is the US would go cold turkey...

      And China would retaliate by selling all their US dollar bonds. You think the economic crisis is bad _NOW_?

      --
      - These characters were randomly selected.
    4. Re:the real problem is enforcement by Sanat · · Score: 4, Interesting

      I was a visiting American Scientist during my prolonged stay in China and was the first American that many Chinese seen since the Chiang Kai-shek stuff from the 50's and 60's. I traveled some with the president of the American company where I worked (he was American Chinese) and so I had a lot of opportunities to explore many place that most Americans would not be admitted.

      I literally traveled from one end of China to another. I am rather a low key guy but because of my title then each Chinese providence would hold a banquet in my honor and so we would drink wu-shing pigu (5 star beer) and a clear liquor that I forget the name of but it was potent... anyway, I found the Chinese to be a most proper group of individuals and were good to their word... except if government was involved then they followed the ticket that was being trailed out... probably for self preservation.

      I really enjoyed the people and loved the environment... being raised originally on a farm in Ohio made me understand a lot more than if I was a city slicker. What I did find though was that the average person did what they had to do to get along in life. If it meant duplicating a song or a data file then it was not a problem for them... I must reiterate that their values were neither greater nor less than mine but rather that they did what they had to do to survive in the economy of that era.

      Sometimes I wish that I had transfered there permanently. My heart is very similar to that of the typical Chinese individual and they had a warmth that I find missing in today's life in America.

      --
      And in the end, the love you take is equal to the love you make
    5. Re:the real problem is enforcement by Detritus · · Score: 2, Interesting

      Right, the "Vast Western Conspiracy" to talk trash about China. That's the sort of thing I hear from Chinese students who have little experience with other societies.

      --
      Mea navis aericumbens anguillis abundat
    6. Re:the real problem is enforcement by troll8901 · · Score: 2, Informative

      wu-shing pigu (5 star beer)

      Suggest you call it either "wu-shing pi-chiu" or "wu-xin pi-jiu" instead. "Pigu" sounds like ass... I swear!

      clear liquor that I forget the name of but it was potent

      The Chinese, Japanese and other Asians are great at making wine out of anything - rice, barley, wheat, and so forth. One mouthful is enough to make me drunk.

      You've lead a very interesting life. And you're a real Scientist with a 3-digit ID!

    7. Re:the real problem is enforcement by sumdumass · · Score: 2, Interesting

      What he was saying is that it wouldn't matter because any real damage it caused the US would be echoed into the world economy and it would limit itself.

      Suppose you were the importer, when your US dollar buys three times as much US goods, you only need one third of them. When you holdings lose two thirds of their value, you don't have the money to spend on importing so the demand drops. China doesn't regulate it's dollar on the open market either. It's artificially set so it isn't apparent that they could play the money game where they attempt to profit by creating a scheme like that.

      Besides, the actual need for Currency is pretty much mute any more. Everything is done globally with electronic transfers that are honored by international banks. On the scales that exporters/importers operate on, they just find a multinational bank and don't worry about it as long as they keep funds on both sides. The conversions fees are even smaller if not waived for items like this. Only small time operators like tourists and novelty brokers needs to worry about currency conversions like you mentioned.

    8. Re:the real problem is enforcement by Jah-Wren+Ryel · · Score: 2, Insightful

      I suspect a trip to most countries in Africa would refresh the mind as to what it means to do what one needs to do to survive. It certainly has nothing to do with putting a pirated song on your knockoff iPod.

      But it does have a hell of a lot to do with selling a CD of pirated songs for 5 yuan to somebody who can afford an ipod.
      Try not to automatically assume someone is an idiot just because you don't immediately see where they are coming from.

      --
      When information is power, privacy is freedom.
    9. Re:the real problem is enforcement by Rich0 · · Score: 2, Interesting

      And China would retaliate by selling all their US dollar bonds. You think the economic crisis is bad _NOW_?

      Doubtful - at least as more than a symbolic gesture.

      Those bonds have substantial value to the Chinese. If they have 100 billion dollars worth of US bonds they're almost certain to get 100 billion dollars in cash over the next few decades as they mature. If they sell the whole thing for a million dollars then they get a million dollars worth of various currencies now. As an added bonus they REALLY tick off the US government. It would make it harder for the US government to issue new debt for a while, but I doubt it would cause the sky to fall. If the US actually tightened its belt and stopped running a deficit then it wouldn't have any impact at all (granted, that kind of spending discipline would make economic recovery more difficult).

      What it might do is trigger a small war of some kind, which the Chinese are not equipped to fight (they have no deep water navy as yet - so all the fighting will be in their own territory). China has a huge army, but unless it plans to swim the bearing strait it doesn't really have any way to leave the country unless they plan on invading the Ukraine (and the former soviet states do NOT mess around). They might be able to invade Taiwan but even that would be iffy (a few subs could take out a lot of troop transports, and there isn't that much land to defend with hidden anti-air defenses). The US wouldn't be interested in actually siezing the country or anything (which would be crazy with the size of their army), but they could just drop lots of bombs on bridges or anything else with a military application and watch their economy grind to a halt. Simply blockading their ports would pretty much cripple their export-driven economy, and cut off their oil supplies as an added bonus (you could bomb the few overland pipelines very easily).

      This would never actually happen in real life - since everybody knows it isn't worth anybody's time to get into this kind of a mess. The US and China will continue to trade words while the rich guys making the money make sure the borders stay open.

  7. Haha by Idiomatick · · Score: 2, Funny

    If the wto made a ruling against China which will obviously be ignored what are they going to do. Punitive measures? Oh lets stop trade with China, great idea. Kind of a silly system if you ask me.

    1. Re:Haha by TubeSteak · · Score: 4, Informative

      If the wto made a ruling against China which will obviously be ignored what are they going to do. Punitive measures? Oh lets stop trade with China, great idea. Kind of a silly system if you ask me.

      The punitive measures are not "lets stop trade with China".

      Normally the WTO gives the wronged party permission to institute tariffs/duties on specific goods from the offending country, equal to the losses sustained by the aggrieved. Here's a recent example of the USA raising tariffs on cheese imported from Europe.

      --
      [Fuck Beta]
      o0t!
  8. Obvious answer by Anonymous Coward · · Score: 3, Funny

    Make the US dollar bonds worthless by spending made up USD like... like, um, politicians!

  9. IPKat by thesp · · Score: 5, Informative

    IPKat has a very nice analysis, as usual, here:

    http://ipkitten.blogspot.com/2009/01/breaking-news-wto-panel-report-on-us.html.

    However, IPKat concludes that it's more of a score-draw than a loss by the US.

  10. Re:I'm confused by Toonol · · Score: 2, Insightful

    If only 30% of the stories relate to Microsoft, Slashdot is probably under-reporting... Windows is on a far higher percentage of PCs than 30%. You should be happy the amount of Linux stories doesn't accurately reflect the installed base.

    In reality, Slashdot focuses more on Linux and less on Windows than any simple news aggregator would. They do have a bias, but it's exactly the opposite of your conspiratorial theory. So, no, nobody sensible thinks Microsoft shilling is going on here. In fact, it would require a worrisome disconnect from reality to hold that idea.

  11. Quite fair actually by femto · · Score: 4, Interesting

    It seems quite fair to ask that the rights holder pay the cost of production if they choose to take possession the bootleg product, as they are then free to sell it for retail price. Why should the rights holder get a bunch of free product, which they would otherwise have to have paid to produce? If they rights holder doesn't want to retail the bootleg product themselves they can refuse to buy it.

    In this case the Chinese government seems to be ahead of the US in applying market principles..

    1. Re:Quite fair actually by sumdumass · · Score: 4, Interesting

      I think the problem isn't as much the IP holder not wanting to buy the counterfeit product back. For all intents and purposes, the product could be tainted in some way or carry a liability of some sort. The problem is that if it was wrong for the pirate to sell the material based on the lack of permission from the copyright holder, then it is still wrong for anyone else to do the same.

      You see, law enforcement isn't supposed to be making a profit from other people's crimes whether you agree with those crimes or not. And because the IP holder doesn't want to purchase them, doesn't mean they lose any right to them. Otherwise the cops could create a legitimate counterfeiting scheme where they find all sorts of counterfeit merchandise but never the pirates and thereby are guaranteed a profit by either selling them to the IP holder or the public at large. Market principles simply don't apply unless copyright law says something to the effect of "the creator or owner of the copyright has the exclusive control over distribution unless the cops find someone breaking the law". As far as I know, it doesn't and as far as I know, the exclusive rights are guaranteed by treaties which don't hold those provisions.

    2. Re:Quite fair actually by Anonymous Coward · · Score: 2, Insightful

      As rights holders are quite fond of telling everyone: you own the plastic of which the DVD is made, we own (and license) the rest. Now the boot is on the other foot, and the rights holders don't like it. The Chinese government isn't selling rights owners the IP (which the holder already owns). What they are selling them is a lump of plastic. There's no profit involved. All the Chinese government is saying is "we get the free lunch, not you". Quite justified, especially since the government has incurred policing costs.

    3. Re:Quite fair actually by KDR_11k · · Score: 2, Interesting

      But is it right to force someone to buy something?

      --
      Justice is the sheep getting arrested while an impartial judge declares the vote void.
  12. As the USA just ignore's WTO.. by Jack+Sombra · · Score: 4, Insightful

    As the USA just ignores WTO when it suits them, like in the case of Internet Gambling and Antigua, do they honestly expect a country like China to pay any attention to WTO? And god help USA if it try's to "punish" China, as China could make the dollar worth less than a Zimbabwean dollar and blast the US economy back to barter system overnight

  13. It's a tad more complicated by SpeedyDX · · Score: 4, Interesting

    The way the U.S. Constitution is set up is quite unique with regards to international treatises and agreements. Once the U.S. enters into an international treatise, it is not only bound to act in accordance with the treatise in international relations, but the treatise also becomes a law of the land. And not only is it a law of the land, it is considered on par with other constitutional law, i.e., supreme over other laws.

    Because of this very unique structure (I am unaware of other major political players with similar constitutional provisions), the U.S. tends to have more of a vested interest in either trying to change the terms of an agreement so that it falls more in line with their own laws, or to abstain entirely from an international treatise (e.g., Kyoto).

  14. A realistic economy by zogger · · Score: 2, Insightful

    So we would have to go back to something more balanced and actually produce goods in the US again? I fail to see a downside, considering I am old enough to remember when the bulk of the goods you could go out and buy here were produced here, and the economy was perfectly fine and the middle class was growing with actual savings and we didn't have near as much debt (personal/corporate/governmental). This is one of those things you have to have experienced, it is probably too hard to just muse on it intellectually, but yes, the US is large enough to be able to do this, to set as a primary goal a robust internal trading economy. If you look at it, it is a 50 state trading union, with an established common language and monetary unit. Now we can't support a huge bloated tick class of do nothing office wealth rearrangers hanging around million dollar offices who need bailouts when their gambling debts go bad with a domestic manufacturing economy, or some giant governmental "worker" base, but again, that isn't a downside.

    The other method, taken as a whole, this globalization that completely ignored a lot of the reality on the ground such as foreign nations ignoring IP etc, has failed and the economy is in such a mess now that all sorts of wild assed schemes are needed to "save" it. I contend it is better to let the past few decades long experiment in alleged "investment" ponzi schemes and get rich quick schemes and so on just finish failing and rebuild back to the older model that really worked, and improve on that one instead. There were flaws then of course, but we threw the baby out with the bath water by "investing" in their "make china and a few other nations and a handful of CEOs rich while the rest of everyone else went into debt" model. That one has been mostly epic fail, the unemployment numbers and balance of trade numbers and debt load and whatnot recent bad economic news prove that without a doubt.

    We traded a few years of cheap gadgets and an exploding debt crisis for more moderate and sustainable and balanced growth and security. I'd rather have had the latter. If their notion of globlization worked, we wouldn't be seeing all these western nations and companies and banks failing right now or going through various economic crises. You cannot borrow your way to wealth, eventually you have to work for it. You can't printing press up more money and call that a sound economy, that will never, ever work, money needs to be based on produced wealth, not unsustainable credit. Keynesian economics and what passes for globalization now are a *fraud* and have failed, it does no good to think rearranging them again with words that push those notions will fix the fundamental errors of that sort of economic system. It needs to be abandoned.

  15. Also by Sycraft-fu · · Score: 4, Informative

    When you start talking severe economic moves, the US could always respond in kind. What happens if they declare the bonds to be worthless, as in they aren't going to pay? That negatively impacts their credit of course, but then maybe they are able to successfully spin it with their allies so that it doesn't. China is waging "economic war" against the US so they HAVE to respond in kind, etc, etc, etc. Or perhaps as you suggest there are actual war overtones and as part of that, the US freezes all China's assets, including the bonds. They find a semi-legal way to make them worthless, a way that doesn't piss off anyone else (and in fact maybe makes other bond holders happy since it doesn't devalue their bonds).

    There are many people who act like it is a case of China holding all the cards, and the US being at their mercy. Actually it's more a case of economic mutually assured destruction. While it is likely China could cause havoc to the US economy, it is a near certainty that the US response would decimate the Chinese economy. Hell it might not even be any real response. China trys to tank the US economy, the US doesn't respond, the economy tanks. Americans pull extremely far in to their shells and stop buying everything but essentials, and specifically good from China (since you know the media would have a field day with this). The Chinese economy grinds to a halt and now they have a major problem of civic unrest.

    Basically it isn't something either country stands to gain from thus it isn't likley to happen. China wants the US happy and buying their goods.