China Paid USD 35.6 Billion in IP Royalties in 2018

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The China's Position on the China-US Economics and Trade Consultation white paper was published by the State Council Information Office of the PRC at the press conference on June 2. Wang Shouwen, vice minister of Commerce and deputy China International Trade Representative, and Guo Weimin, vice minister of the State Council Information Office of China both attended the conference to introduce and explain the detailed information on the white paper.

To answer the question raised by the media that in the past Chinese companies were criticized by the US for obtaining valuable technologies and intellectual property by various means, Wang explained that in 2018, China paid USD 8.64 billion in IP royalties to US in 2018.

According to Wang’s introduction, at present, China has become a more important country in the IP field with the progress made in IP protection. In 2018, the number of patent applications of Chinese inventions reached about 1.5 million, ranking the first for 8 years continuously. Meanwhile, IP trade between China and other countries went very positively. In the area of IP purchase, compared to USD 1.9 billion of IP royalties paid by China in 2001, last year, the royalties reached USD 35.6 billion, increasing by 19 times, of which the royalties paid to the US reached USD 8.64 billion, taking up nearly a quarter of the total number.

“China attaches great importance to IP protection and that’s the reason why there are more and more inventions, and more enterprises & countries are willing to sell their IP to China. China has made great achievement in IP legislation, justice and law enforcement.” said Wang Shouwen. He stated that the China’s government does not participate in the process of Chinese enterprises purchasing or selling IP to foreign countries or enterprises. The obligation of the government is to create an environment where IP will be respected and protected to encourage more IP development and provide better protection to boost the development of innovative economy.

July 5, 2019

Source: People.com.cn

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