U.S. Piracy Case May Raise Trade Tensions With China

This article picked a sensitive and permanent topic about piracy in China. As the author mentioned, “the antipiracy complaints will mark the culmination of several years of work within the administration (the Bush administration) to build a case against China over alleged intellectual-property abuses, which hit U.S. exports ranging from auto parts to scientific journals.” Nowadays, piracy is a serious world-wide problem, and obviously, China must be the most stubborn part.
I think it is not the right time for America to accuse Chinese government. As a Chinese person, I saw the efforts from the government and the advancements it made during last several years. Compared with past, the Chinese market is getting better and canonical. Now, the urgent affair is finding out a more efficient way to restrict piracy together but not appealing to protection of own benefits first.
The key advantages of piracy are lower total cost (evasive taxes, low-grade technology). For this reason, the break-even prices of pirated goods are much lower than legal goods. People who take part in these illegal businesses can gain much more benefits by the difference between the market price and break-even price. Now, the whole world tries to solve this problem by stricter punishments to both producers and consumers of pirated goods. Although stricter punishments can shrink the supply of pirated goods, the move will push up the price of black market and make the businesses more profitable as well. By this notion, the efficient way to figure out this problem, in my opinion, should only be to decrease the demand of pirated goods. Owing to the unavoidable higher costs and concomitant higher prices, the government cannot totally eliminate the difference of costs between pirated goods and illegal goods. The advantage of the lower prices exists all the time. Unfortunately, it seems there is nothing that can stop people pursuing incentive but ethics. Do you have any good suggestions?