CHINA WATCH : Pirates Overboard

For some time now, China’s pirating of U.S. copyrights and patents has been an outrage. The damage to American business ran more than $400 million a year. And, to add insult to injury, Beijing showed no signs of stopping the practice, despite Washington making every effort--and sometimes maybe too many efforts--to accommodate China’s leadership since the Tian An Men Square massacre in 1989.

Now, at the eleventh hour, Beijing has agreed to end the looting. It promises to provide legal protection for U.S. copyrights and patents on computer software, pharmaceuticals, chemicals and sound recordings.

In a major concession within this week’s agreement, China vows to protect newly patented products as well as recognize existing patents on drug and agricultural chemical products.

Last November, the Bush Administration said it would impose tariffs on up to $1.5 billion in Chinese exports if Beijing continued to rip off American patents. China threatened to retaliate against U.S. imports.

Beijing’s new cooperative spirit helps to relieve some of the mounting tension over the $10-billion-plus U.S. trade deficit with China. As in others parts of Asia, U.S. exporters face barriers to getting market access for their products.

Meanwhile, in a separate action, China agreed to allow two U.S. companies--the first foreign firms--to compete for shipping business there.

Had the United States and China failed to settle the piracy matter, an all-out trade war might have erupted.