On March 19, 2025, China’s State Council unveiled the Regulations on Handling Foreign-Related Intellectual Property Disputes (hereinafter referred to as the "Regulations"), which will take effect on May 1. This marks a significant step in China’s intellectual property (IP) protection efforts, aimed at addressing increasingly complex cross-border disputes amid globalization, safeguarding the legitimate rights of Chinese citizens and entities, and promoting high-quality economic development.
The Regulations establishes a comprehensive framework for foreign-related IP protection, covering dispute prevention, guidance, international cooperation, and countermeasures. It unequivocally appoints responsible law enforcement institutes for IP protection and provides a relatively complete legal structure for potential IP dispute solving.
For example, for coordination and public services enhancement, The State Council’s IP and commerce authorities will lead efforts to build information-sharing and early-warning systems, publishing updates on foreign IP laws and landmark cases to alert enterprises and provide legal assistance.
Also, to ensure fairness and reduce litigation expenses, as being supported by commercial mediation organizations and arbitration bodies non-litigation methods like mediation and arbitration are encouraged.
Meanwhile, Regulations also encourages the overseas branches establishment by law firms and IP service agencies, while supporting enterprises in setting up mutual aid funds and incentivizing insurers to develop IP insurance products to further reduce litigation costs.
Furthermore, in response to foreign entities using IP as a tool to suppress China, the Regulations clarifies that countermeasures under the Anti-Foreign Sanctions Law may be applied, prohibiting domestic organizations from complying with discriminatory foreign restrictions.
Overall, the Regulations aligns with China’s broader strategic elevation of IP protection to a national priority, which has been one of the key goals for China’s national development since the last decade, and significant achievement has been made. By the end of 2024, China had 4.756 million valid invention patents (marks the top in quantity globally) , with patent transfer and licensing registrations surging 29.9% year-on-year. At the local level, nine cities, including Beijing and Shanghai, are piloting standardized IP public services to enhance efficiency.
Besides the fast development in metropolitan, regional innovation hubs are also thriving. For instance, Linyi in Shandong Province saw 141 invention patents granted in January 2025, with a 22.5% year-on-year increase in valid patents, reaching 8.18 patents per 10,000 people—highlighting sustained local innovation capacity.
Globally, China’s innovation ranking rose to 11th in the World Intellectual Property Organization’s Global Innovation Index 2024, with Beijing securing third place among global tech clusters. China’s digital economy, exceeding 50 trillion yuan and accounting for over 40% of GDP, and its 800% surge in generative AI-related patents since 2017, underscore its technological leadership.
Judicial and financial innovations are reinforcing these efforts. The Beijing Intellectual Property Court, for example, has assembled a multidisciplinary team to handle complex tech cases with precision. Meanwhile, the "Zhi Rong Bao PLUS" platform, a government-bank-enterprise collaboration, has provided nearly 2 billion yuan in IP-backed loans, easing financing challenges for tech SMEs.
China is also reshaping global IP governance. The 2025 Zhongguancun Forum introduced the Beijing Guidelines for Data IP Transactions, clarifying cross-border data trade regulations and facilitating global innovation flows. Simultaneously, China is legislating against abusive IP barriers imposed by some nations, upholding fair competition.
The implementation of the Regulations represents a pivotal initiative in China’s open economic restructuring. By integrating policy support, judicial safeguards, and market innovation, China is engaging in global IP governance with renewed openness, injecting robust momentum into its high-quality development trajectory.
