WASHINGTON—U.S.-China trade talks produced a sales framework agreement between Motorola Inc. and China National Postal and Telecommunications Appliances Corp., and a commitment from Beijing to be technology neutral on third-generation mobile-phone standards.
Tuesday’s meeting of senior officials from both countries also led to the creation of a U.S.-China High Technology and Strategic Trade Working Group under the U.S.-China Joint Commission on Commerce and Trade to review export control cooperation and facilitate high technology trade.
While the Motorola-PTAC arrangement involves the sale of GSM phones in China—the world’s largest and fastest growing mobile-phone market—other details were not immediately available. However, press reports put the deal’s value to Motorola at more than $500 million.
U.S. government and industry officials have expressed concern about China’s interest in pursuing 3G service using the largely untested TD-SCDMA standard.
The Office of the U.S. Trade Representative released the following language that Bush administration and Chinese officials have agreed upon regarding 3G in China: “The Chinese government restated its 2004 JCCT commitment to technology neutrality for 3G standards. It agreed to ensure that telecommunications service providers will be allowed to make their own choices as to which standard to adopt, and to issue licenses for all 3G standards in a technology neutral manner that does not advantage one standard over others.”
China, according to USTR, also agreed to make appropriate adjustments to its registered capital requirements for telecommunications service providers. The JCCT Telecommunications Dialogue is scheduled to meet to discuss implementation of this particular Chinese commitment. China also said it would take steps to curb piracy of intellectual property rights.
