China’s intellectual property framework is advancing through targeted regional revitalization strategies and financial innovation, shifting from quantity-centric metrics to quality-driven governance. The northeastern provinces (Jilin, Liaoning, Heilongjiang) and Inner Mongolia—historically industrial hubs—now prioritize IP development in high-end manufacturing, biomedicine, and modern agriculture. By April 2025, these regions held 195,000 valid invention patents (10.2% YoY growth) and 2.16 million trademarks (7.7% YoY increase), with 46,000 patents concentrated in strategic emerging sectors. This growth stems from provincial initiatives: Liaoning established national centers for foreign-related IP dispute training; Heilongjiang introduced financial policies to incentivize patent commercialization by researchers; and Jilin built IP-focused industrial zones for photoelectronics and agribusiness.
Concurrently, financial mechanisms are unlocking latent IP value. In May 2025, China’s first intellectual property asset-backed securities (ABS) issued by a research institution launched, with the Nuclear Industry Physical and Chemical Engineering Institute securitizing patents for high-precision vacuum electric adjustment devices. The ABS raised ¥21 million at a record-low 2.15% interest rate, revitalizing dormant patents and establishing a "technology evaluation–asset confirmation–capital transformation" model to bridge R&D and market gaps. This pilot exemplifies efforts to convert IP into tangible assets, addressing longstanding commercialization bottlenecks in academia.
Administrative reforms further streamline IP services. Inner Mongolia’s expedited IP processes for biology and new materials patents ensure rapid innovation protection, while national guidelines mandate patent and trademark changes be completed within 1 month and 40 days, respectively. Blockchain-authenticated evidence is now required for trademark use declarations, reducing procedural delays. The Inter-ministerial Joint Meeting System for Developing China into an IP Powerhouse, coordinating 28 central departments, underscores institutional commitment to aligning IP policies with the IP Powerhouse Construction Outline (2021–2035).
International tensions, however, complicate cross-border IP cooperation. U.S. restrictions on Huawei’s Ascend chips (citing export control violations) and the EU’s WTO complaint against China’s standard-essential patent (SEP) injunctions reflect enduring friction. Conversely, Chinese brands face novel challenges abroad: Pop Mart’s global hit character Labubu spurred counterfeit "Lafufu" toys, which gained subcultural popularity in Western markets. Despite Pop Mart filing 288 domestic lawsuits and supporting customs seizures of 140,000 fakes in 2024, enforcement gaps persist in overseas markets like Singapore, where unofficial collaborations exploit IP ambiguities.
Emerging technologies demand adaptive IP frameworks. China’s 2025 Opinions on Optimizing the IP Business Environment emphasize data IP rules and open-source compliance standards, while piloting AI-assisted examination systems to accelerate patent reviews. However, algorithmic squatting and generative AI counterfeiting—as seen in Pop Mart’s "Lafufu" phenomenon—highlight unresolved vulnerabilities in digital IP protection.
Looking ahead, China’s IP evolution hinges on balancing regional revitalization with global compliance. The northeast’s industrial transformation and ABS financial innovations signal progress in IP monetization. Yet, harmonizing enforcement norms (e.g., reconciling TRIPS obligations with domestic SEP injunctions) and curbing extraterritorial infringement remain critical to sustaining China’s transition from IP quantity to quality governance.