The US Chamber of Commerce, in a 63-page report on China's WTO implementation performance, said Beijing's failure to live up to commitments to enforce intellectual property rights remained "a matter of grave concern."

"China's IPR enforcement did not markedly improve for our companies in 2005," said Myron Brilliant, Chamber vice president for East Asia.

"While we recognize increasing efforts and attention by China's central government to address this problem, current measures have failed to significantly reduce epidemic levels of piracy and counterfeiting. China should also take immediate steps to increase imports of legitimate products that are now distributed and used illegally."

The report cited a few areas progress in China over the past year, including the relatively smooth acquisition of trading rights by foreign companies, approval of US companies to conduct auto financing, and improvement in China's agriculture import management.

But it noted that China missed key implementation deadlines and is continuing to adopt policies that are more restrictive for US companies than those in place prior to its WTO accession. As China nears the end of its phase-in period for WTO implementation, it must expand market access that underlies the letter and spirit of its commitments."

The report was submitted to the United States Trade Representative's office, which enforces US trade laws.

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