Companies generally agree that the IP commitments included in the Phase One agreement are a step in the right direction. Some industries are more confident than others that the commitments will improve the protection and enforcement of their IP rights in China in a tangible way. The 30-day window of time between the agreement going into effect and the release of China’s IP Action Plan provides an opportunity for industry to raise recommendations to both governments.
China Market Intelligence
On November 15, China’s National Development and Reform Commission (NDRC) released the Guiding Opinion to Deeply Integrate Advanced Manufacturing and Modern Service Industries, outlining a plan for updating China’s manufacturing capabilities by 2025.
This past year finally saw more specific guidance on cybersecurity reviews, critical information infrastructure (CII), cross-border data transfers, and personal information, though many of the policies remain in draft form.
The Chinese government is exploring the use of its corporate social credit system (SCS) as an intellectual property rights (IPR) enforcement tool. Under this system, placement on a new patent infringement blacklist released by China’s National Intellectual Property Administration (CNIPA) will, in turn, damage a company’s social credit rating. CNIPA is working closely with the State Administration for Market Regulation (SAMR), which will also rely on the SCS and other administrative measures...
President Xi recently pledged improvements to market access, IP protection, competitive markets, and monetary policy among other issues. Still, insufficient transparency surrounding opportunities for foreign companies to participate in projects continues to cloud companies’ strategic planning around BRI.
China recently made a series of regulatory changes that took immediate effect and address US technology transfer concerns, including revisions to the Technology Import and Export Regulations and equity JV implementing regulations.
China’s legislative process continues to evolve, particularly after the 2018 National People’s Congress (NPC), which launched a mass government restructuring and strengthened the role of the Chinese Communist Party (CPP) in the constitution.
At last year’s National People’s Congress (NPC), China launched a massive government restructuring to streamline policymaking and enforcement. Throughout the months-long reorganization process, the government continued to move ahead with policy reforms in some areas, while other regulations on the NPC 2018 work plan were not addressed.