IP Protection in China: What’s Changed Since Our First Look

China has been heavy in the media again, not only because of continued trade tensions with the U.S. but also because of its evolving role in innovation and IP protection. Six years ago, we shared some cautiously optimistic developments on China’s progress in this area. Fast forward to 2025, and it’s time to revisit the topic with fresh eyes.

Back then, The Economist’s Schumpeter blog caught our attention with the surprising headline, “Chinese firms are not all serial intellectual-property thieves.” It challenged the narrative dominating the U.S.-China Trade War and pointed to a more nuanced view of China’s maturing IP framework.

A Lot Has Changed

IP has always been a core concern for those sourcing from China. When we first published this post, China had only granted its first patent in 1985. Today, it boasts over 5 million valid invention patents and consistently leads the world in annual filings. While quantity doesn’t equal quality, it’s a strong signal of change.

Back in 2018, Disney and Michael Jordan had just won landmark trademark infringement cases. Fast-forward to today, and China has implemented a host of structural reforms:

• Specialized IP courts now operate in over 20 cities, providing faster and more consistent rulings.

• The Ministry of Public Security recently issued new guidance to combat trade-secret violations and counterfeit manufacturing.

• The Supreme People’s Procuratorate created a dedicated IP prosecution office in 2025, emphasizing stronger enforcement.

A System Still Evolving

While China’s IP enforcement has strengthened, loopholes remain—particularly in inland provinces where local protectionism still exists. Western companies can still face challenges, especially when up against well-connected local firms.

That said, foreign companies continue to win more IP lawsuits in China than domestic ones, often receiving higher damages. As the China Law Blog noted even years ago, litigation in China can be less time-consuming and less costly than in the U.S.—and a granted injunction can even apply to exported goods, not just domestic sales.

From “Thieves” to Innovators

A key turning point? Chinese companies themselves are now suffering from IP theft—especially as they expand into Southeast Asia and beyond. According to recent WTO rulings and internal reforms, China is taking the issue seriously, not just due to external pressure, but because innovation now matters to its own firms.

Companies like Huawei, Tencent, and Alibaba continue to lead in global patent filings. And new government programs are helping universities and research centers commercialize their inventions more quickly.

So, What Should You Do in 2025?

Despite progress, don’t let your guard down. We continue to recommend:

• Register your patents and trademarks in China, not just in your home market.

• Use strong Chinese-language NNN agreements (not just NDAs).

• Limit access to proprietary info and segment your supply chain where needed.

• Regularly audit suppliers and enforce contracts.

Final Thought

In 2018, we asked: “What measures do you take to protect your IP?” That question still stands today—but the playing field has changed. China has made measurable progress, but your protection still depends on proactive measures and smart partnerships on the ground.

Want to know how we help our clients protect IP when sourcing from China? Contact us to learn more.

This blog was originally published in 2019 and republished with updated information on July 30, 2025.