What's Happening?
China has revised its Foreign Trade Law to enhance the protection of intellectual property rights (IPR) in foreign trade. The updated law, effective from December 27, 2025, along with the Provisions of the State Council on the Handling of Foreign-Related
Intellectual Property Disputes, outlines a comprehensive framework for addressing IPR issues. These regulations empower the Ministry of Commerce of the People's Republic of China (MOFCOM) to conduct investigations into IPR infringements by imported goods, IPR abuse, and unfair treatment in IPR protection. The framework includes trade investigations, restrictive measures, and countermeasures to safeguard China's foreign trade interests.
Why It's Important?
The enhancement of China's IPR protection framework is significant for international trade relations, particularly with countries heavily involved in trade with China. By instituting a robust mechanism to address IPR infringements and abuses, China aims to protect its domestic industries and maintain fair competition in the global market. This move could impact foreign companies exporting to China, as they may face stricter scrutiny and potential trade restrictions if found violating IPR laws. The policy also reflects China's strategic approach to counteract discriminatory practices against Chinese entities abroad, potentially influencing global IPR enforcement standards.
What's Next?
China's implementation of these revised IPR protection tools may lead to increased trade investigations and enforcement actions against foreign entities. MOFCOM is likely to enhance coordination with other government agencies to effectively utilize these tools. Foreign companies may need to reassess their compliance strategies to avoid potential trade restrictions. Additionally, the international community will be observing how these measures affect China's trade relations and whether they lead to reciprocal actions from other countries.
Beyond the Headlines
The revised IPR protection framework underscores China's commitment to strengthening its legal and policy instruments in foreign trade. This development may influence global IPR policies, encouraging other nations to adopt similar measures. It also highlights the growing importance of IPR in international trade negotiations and the potential for increased legal disputes over IPR issues. The framework's emphasis on reciprocity and national treatment could lead to broader discussions on fair trade practices and the role of IPR in economic diplomacy.
