By CHARLES HURT in Washington, DC, and BILL SANDERSON in NY

While we were toasting China's President Hu Jintao at the White House yesterday with steak and Cabernet, his nation's factories continued to pump out billions of dollars worth of counterfeit goods that were being sold right on the street in lower Manhattan and across the nation on the Internet.

On Canal Street, a vendor with a table full of knock-off designer handbags brazenly peddled a supposed Coach handbag to a Post reporter for $50 -- far from the price of the real bag, the US-based firm's Madison line, which sells for $698 in stores.

US Customs officials have determined that 90 percent of these fake goods, from pharmaceuticals to knock-off handbags, originate in China's factories -- robbing US firms of profits and workers of jobs.

"China is the source of a great deal of trademark counterfeiting, including fake drugs, knock-off handbags, and phony everyday consumer products.

(Reuters) - U.S. agencies and officials would get new powers to go after foreign websites that sell counterfeit goods and pirated music, movies and books under a bill passed on Thursday by the Senate Judiciary Committee.

The bill, which supporters hope will set the stage for action next year, targets "rogue websites" in countries such as China that are outside the reach of U.S. law.

The measure, approved by the Senate panel in a 19-0 vote, has the backing of companies including Disney, Nike, Merck and Time Warner and groups such as the Screen Actors Guild, the Motion Picture Association of America and the U.S.

WASHINGTON (Dow Jones)--A senior Chinese trade official assured U.S. business representatives Thursday that his government is firmly committed to protecting intellectual property rights.

Chong Quan, China's deputy international trade representative, said a six-month crackdown launched by the government in October will ensure that all companies are protected from infringement, including multinationals.

"China fully understands the concern of American industries on the IPR issue," Chong said at an event hosted by the U.S. Chamber of Commerce. "We are deeply aware that only by strengthening IPR protection can we encourage innovation."

For many U.S. companies operating in China, lax intellectual rights enforcement is a bigger concern than the more high-profile dispute over currencies. The U.S.

Developed countries are looking for ways to address the ongoing lack of intellectual property enforcement and efforts to bypass international trade obligations in the four biggest emerging global economies, as well as emulation of this behaviour by other emerging economies in particular as the four countries have a stronger voice in international fora, a panel of United States trade experts said this week.

Brazil, Russia, India and China, often referred to as the “BRIC” countries, were the subject of a 1 September discussion gathering entitled, “The BRIC effect – part three: intellectual property rights and future paths for US policy.” The event was meant to explore “how best to calibrate the US policy toward these countries in the years ahead,” but mainly offered a description of the problem.

The event was the last in a three-part series held by the Washington, DC-based United States Chamber of Commerce International Division and Global Intellectual Property Center.

On September 1, the U.S. Chamber of Commerce's Global Intellectual Property Center and International Division will host an event titled, "BRIC Effect, Part 3: Intellectual Property Rights and Future Paths for U.S. Policy." This final event in a three-part series will examine the challenges to protecting intellectual property rights in the BRIC countries and explore possible modifications of U.S. policy toward Brazil, Russia, India, and China in the years ahead. The event will be held at the U.S. Chamber of Commerce from 8:30 a.m. to 11:30 a.m. Panelists of the event include Chris Israel, Managing Partner, PCT Government Relations; Jeffrey Kushan, Partner, Sidley Austin LLP; Stan McCoy, Assistant U.S. Trade Representative for Intellectual Property and Innovation, Office of the U.S.

In China, GIPC is working with other IP stakeholders on a comprehensive initiative to advocate for enhanced regulatory data and patent protection for rights holders.  GIPC is also working to reduce infringing content on user-generated content and deep-linking websites in China.  To address these priority issues, GIPC is: developing sustained, high-level dialogue between U.S. IP experts and PRC government officials, business stakeholders, and academics; establishing a robust platform for advocacy on China’s changing IP legal and regulatory frameworks; exchanging best practices through execution of seminars, training, and research; and coordinating policy messages to the U.S. government.  Our program aims to promote China’s goal of building an innovative society in a manner that will benefit domestic and foreign rights holders.