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International flags fly outside the Secretariat building of the United Nations headquarters in New York in April 2018. Chinese citizens head four UN organisations. Photo: Bloomberg
Opinion
Outside In
by David Dodwell
Outside In
by David Dodwell

US paranoia over Chinese heads of UN bodies fails to recognise China’s genuine desire for international engagement

  • The American push against China’s candidate for the top job at the World Intellectual Property Organisation betrayed US disquiet over Chinese influence in international organisations
  • China, however, sees this as part of its re-engagement with the international community and has worked hard to learn and comply with regulations
If you are as weary as I of wrestling with the depressing ramifications of the Covid-19 pandemic, then you may share my interest in a US-China power struggle that came to a head in Geneva last week – the battle for leadership of the World Intellectual Property Organisation (Wipo).

Wipo is one of at least 15 massive agencies set up by Western powers when the ashes of World War II were still warm, which set the rules for a range of economic activity. These United Nations-affiliated organisations include the World Bank, the International Monetary Fund, the World Trade Organisation, the Food and Agriculture Organisation (FAO), the International Civil Aviation Authority, the International Telecommunications Union (ITU) and the International Labour Organisation, Interpol and the International Court of Justice.

The UN’s revenue, which goes towards running these organisations and other programmes, was US$53 billion in 2017, with most funding coming from the UN’s 193 members. Wipo is an exception in that most of its funds come from the money companies pay to have their new ideas patented.

From the UN’s origins, Washington has taken a close interest in the family of UN organisations. Their regulations were largely moulded around a US model and the US provided most of their funding – about 22 per cent in 2017.

So when China put forward Wang Binying, who has been deputy head of Wipo since 1992, to take over as director general, fireworks went off at the White House.
The headquarters of the World Intellectual Property Organisation in Geneva, Switzerland. Photo: Reuters
It did not matter that Wang is widely respected as one of the most experienced IP experts worldwide; from a Washington viewpoint, it was unacceptable that China – regarded as a burglar of US intellectual property for many decades – should be allowed to head the organisation. For Washington, this was putting the fox in charge of the henhouse.

Fevered imaginations in Washington predicted that China would exploit Wang’s leadership to gain access to patent applications before they were published or to alter global IP rules in its favour.

There were also some better founded concerns. China already heads four UN agencies – the FAO, the ITU, the UN Industrial Development Organisation and the International Civil Aviation Organisation. No other UN member holds more than one leadership position among the UN’s 15 specialised agencies that deal with economic activity. Some believe China is making a grab for control of the world’s key regulatory institutions.

Some of China’s top positions are clearly sensitive. Zhao Houlin at the ITU has played a big role in shaping global tech standards , particularly in the telecoms sector. Qu Dongyu, head of the FAO and a former Chinese agriculture vice-minister, has had a large say in global food safety and security challenges.

Perhaps most sensitively, Beijing has rigorously used its influence at the top levels of the UN to exclude Taiwan as part of a strategy to isolate what it still regards as a renegade province.
So exercised was Washington about Beijing’s nomination of Wang as prospective head of Wipo that it assigned no fewer than four ambassador-level officials to lobby UN delegations in Geneva. Last week, these efforts bore fruit with UN members rejecting Wang and instead nominating Singapore’s IP head, Daren Tang.
Singapore’s Daren Tang, who was nominated to be the World Intellectual Property Organisation’s director general, speaks to the media at the Wipo headquarters in Geneva on March 4. Photo: EPA-EFE

Whatever some in the US think about China’s agenda to reshape the world economy in its image by gaining control of its regulatory institutions, I hold a different view. Despite efforts at IP theft in the early decades of China’s re-engagement with the global economy, its behaviour in the past two decades has changed, largely under German tutelage.

China is today one of the world’s biggest payers of IP royalties – US$35.8 billion in 2018 – and also a world leader in new patent applications, making 1.54 million applications in 2018. It accounts for 46.4 per cent of global patent filings and more than double the US’ 597,141 filings. Huawei alone accounted for 3,369 invention patents, with Oppo, Gree, Lenovo, Tencent and ZTE not far behind. If China is still a fox, it has developed strong shared interests with the hens.
There are further reasons Beijing has worked so assiduously to engage in and lead UN agencies. First, the agencies are living symbols of the multilateral trading system that Chinese President Xi Jinping strongly supports.

Second, since it had played no part in setting the post-war regulations, Beijing believed learning the West’s rules and regulations as quickly and comprehensively as possible was an essential step to re-engagement. Getting engaged in regulatory organisations was part of this effort.

It is true that there could be no better way of subverting and controlling the global economy than by capturing its main regulatory bodies, and there are paranoid souls who believe this is Beijing’s intent. But the evidence of Beijing’s engagement over the past decades contradicts this. Chinese officials have learned the West’s rules well and have reinforced their application, even in sensitive areas like telecoms and technology standards.

As Chinese companies have become progressively smarter at generating bright new patentable ideas, it should be no surprise that China wants to use Wipo rules and is keen to play a constructive role in developing them.

I am sure Daren Tang will do a fine job as the new Wipo head, but the storm in a teacup surrounding his appointment was paranoid and unneeded. On the bright side, at least it drew attention to some shadowy regulatory agencies that for the past seven decades have played a significant but uncelebrated role in helping us build today’s globally integrated economy.

David Dodwell researches and writes about global, regional and Hong Kong challenges from a Hong Kong point of view

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