Transfer Pricing Associates

China is "Dulling the Cutting-Edge"

post Thursday September 6, 2012


The European Union Chamber of Commerce published a study last month on China’s patent related policies and practices. The study shows that despite the exploding number of patents filed in China, the quality and the quantity of patents are not in proportion. The study described the overall strength of China’s innovation as “overhyped”. It suggested that China’s IP policies, measures and practices are hampering the patent and innovation quality in China.

China has set quantitative patent targets at both national- and provincial-level. The projections in the study indicate that there may be over 2.6 million less-than-“highest-quality” patents filed in year 2015. The over-emphasis on quantitative patent targets instead of quality innovations undermines the Chinese innovation ecosystem.

The Chinese government implemented Indigenous Innovation Policies (IIPs) based on restrictive IPR requirements linked to financial incentives. The policy limits the IP rights of businesses that are not majority owned by foreign enterprises.

Source: GMA Network, Managing IP, EU Chamber of Commerce, Managing IP

Image Source: Shenzhen Standard

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