China steps up efforts to protect intellectual property rights of foreign companies

Measures in recent years

August 2017:

China has improved the intellectual property protection of foreign-invested enterprises. The country has carried out centralized rectification of intellectual property rights violations such as Internet infringement and piracy, infringement of patent rights, and infringement of trademark rights. China has also strengthened judicial protection and administrative enforcement, and raised the level of punishment for infringement violations. 

-- "Notice of the State Council on Several Measures for Promoting Growth of Foreign Investment"

September-December 2017: 

China has taken steps against illegal and criminal activities such as infringement of trade secrets, infringement of patent rights, infringement of new plant variety rights, malicious squatting trademarks and copycat branding as well as Internet infringement and piracy. It has also strengthened supervision of key links such as imports and exports. 

-- "Action Plan for Protecting the Intellectual Property Rights of Foreign-Funded Enterprises" jointly issued by 12 government departments.

March 2018: 

China has strengthened the protection of intellectual property rights and implemented a punitive damages system for intellectual property rights. 

-- "Government Work Report"

June 2018: 

China has cracked down on infringement and counterfeiting, and increased the level of punishment for infringement of trade secrets, trademark infringement and commercial identity confusion, unfair competition, patent infringement and counterfeiting, Internet piracy and infringement, and related offences. China strictly fulfills the commitment it made when it joined the World Trade Organization. Conditions for technical cooperation in foreign investment shall be agreed by the parties to the investment, and the people's governments at all levels shall not use administrative means to force technology transfer. 

-- "Circular of the State Council on Several Measures Concerning the Active and Effective Use of Foreign Investment to Boost High-quality Economic Growth"

High-level voice

Premier Li Keqiang: 

China will strictly protect intellectual property rights, and will never force foreign companies that invest in China to transfer technology. Those who violate intellectual property rights should be given severe punishments, and those who maliciously infringe on intellectual property rights should be more severely punished.

Shen Changyu, director of the State Intellectual Property Office: 

China has continuously increased the protection of intellectual property rights, and has always adhered to equal protection of intellectual property rights of domestic and foreign enterprises in recent years. The international community has spoken highly of China’s efforts and practice.

Wang Shouwen, vice-minister of commerce: 

We should make sure all aspects of foreign investment processes are fair, so that foreign-invested enterprises can really feel that they enjoy national treatment in China.

Overseas feedback

Mark Snyder, vice president of Qualcomm: 

China has undergone earth-shaking changes in recent years. A series of documents and national policies on strengthening intellectual property rights protection have been introduced, which let us see the Chinese government’s determination to protect intellectual property rights. I greatly appreciate the stable policy environment provided by the Chinese government. Qualcomm has continuously increased its investment in China in recent years. The Chinese government's policy of strengthening the protection of intellectual property rights has greatly boosted the confidence of foreign-invested companies like Qualcomm. We are very confident in sustainable investment and long-term development in China.

Margus Sarap, patent agent: 

Our European clients also have the need for intellectual property protection while entering the Chinese market. There are more European companies applying for intellectual property protection in China as China's intellectual property protection system becomes more well-established.