Nearly one third of the value of manufactured products sold around the world, or some $5.9 trillion in 2014 alone, comes from "intangible capital," such as branding, design and technology, according to a WIPO study.

That's why intellectual property is so important and should be protected.

It's widely recognized around the world that China has made big strides in this regard, with its deliberate policies to protect IPR and foster innovation, which according to WIPO director general Francis Gurry "have transformed the geography of innovation." Let's take a closer look.

It's the fourth episode of our series on China's business environment. Find the previous episodes below and stay tuned for the series finale.

Explained: China's new Foreign Investment Law

Explained: How China's Negative List works

Explained: How to register a company in China