What's Happening?
China has revised its Foreign Trade Law to include Chapter V, focusing on the protection of intellectual property rights (IPR) related to foreign trade. The revised 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 policy toolkit for IPR protection. This includes trade investigations, restrictive measures, and countermeasures aimed at safeguarding Chinese interests against overseas discriminatory measures. The Ministry of Commerce of the People's Republic of China (MOFCOM) is authorized to conduct investigations into IPR infringement by imported goods, abuse of IPR, and unfair treatment in IPR protection. These measures are designed to protect China's foreign trade order and ensure fair competition.
Why It's Important?
The implementation of these trade policy tools is significant for China's position in global trade, particularly in protecting its intellectual property rights. By institutionalizing a system of diversified policy tools, China aims to prevent IPR infringement and abuse, which can harm its domestic industries and foreign trade order. The measures also serve as a deterrent against discriminatory practices by other countries, ensuring that Chinese entities receive fair treatment in international trade. This development could influence global trade dynamics, as China strengthens its legal framework to protect its economic interests and maintain competitive fairness.
What's Next?
China may initiate investigations into IPR infringement and abuse as new trade tools to enforce protection upon entry of products. MOFCOM is expected to enhance inter-agency coordination and law enforcement to effectively implement these policy tools. The government may also take comprehensive countermeasures against overseas discriminatory measures, potentially impacting international trade relations. Stakeholders, including foreign businesses and governments, may need to adjust their practices to comply with China's strengthened IPR protection framework.
Beyond the Headlines
The revised Foreign Trade Law and Provisions reflect China's strategic approach to safeguarding its national sovereignty, security, and development interests. The legal framework provides a cross-sectoral toolbox for responding to overseas discriminatory restrictions on IPR. This move underscores China's commitment to protecting its intellectual property rights and could lead to long-term shifts in international trade policies, as other countries may need to reassess their IPR practices in response to China's strengthened measures.
