The transformation of China: from a copycat nation into a powerhouse of innovation
The trade war between the US and China has been about the US accusing China of stealing American intellectual property and forcing US firms to transfer technology to Chinese enterprises. However, many of these US companies were playing catch up with China’s technological innovation.
Since then, US companies have been engaged in intense negotiations with Chinese firms, particularly in the telecom sector, to lease their cutting edge technology following Trump’s decision to put them on a trade blacklist. This captures, in essence, the impressive change of China: from a nation known for piracy, into a powerhouse of innovation.
This is the result of unprecedented changes in the way China has looked at IP rights and set about overhauling the system in an extraordinarily short time.
One thing that should be noted that China had no patent office until the 1980s. Patent law in China began with the proclamation of the Patent Law of the People's Republic of China in 1984. This means its engagement with protecting IP rights and setting up an administrative system is less than four decades old.
Nevertheless, the system is now getting a global reputation for its quick and fair litigation. Some objective western IP analysts have written in praise of the system, noting that it’s easier to protect cutting-edge software, business-methods and biotechnical inventions in China than in the US. Special IP courts in China hear more cases than elsewhere, for example, 10 times more than in the US.
China’s leadership in innovation is underwritten by a huge investment in R&D that is over two percent of its GDP. Its “Made in China 2025” project is aimed at a comprehensive upgrade of the Chinese industry.
Today, Chinese enterprises, both private and state-owned, boast sophisticated IP departments that keep their innovations and advanced Research and Development well protected.
Since then, US companies have been engaged in intense negotiations with Chinese firms, particularly in the telecom sector, to lease their cutting edge technology following Trump’s decision to put them on a trade blacklist. This captures, in essence, the impressive change of China: from a nation known for piracy, into a powerhouse of innovation.
This is the result of unprecedented changes in the way China has looked at IP rights and set about overhauling the system in an extraordinarily short time.
One thing that should be noted that China had no patent office until the 1980s. Patent law in China began with the proclamation of the Patent Law of the People's Republic of China in 1984. This means its engagement with protecting IP rights and setting up an administrative system is less than four decades old.
Nevertheless, the system is now getting a global reputation for its quick and fair litigation. Some objective western IP analysts have written in praise of the system, noting that it’s easier to protect cutting-edge software, business-methods and biotechnical inventions in China than in the US. Special IP courts in China hear more cases than elsewhere, for example, 10 times more than in the US.
China’s leadership in innovation is underwritten by a huge investment in R&D that is over two percent of its GDP. Its “Made in China 2025” project is aimed at a comprehensive upgrade of the Chinese industry.
Today, Chinese enterprises, both private and state-owned, boast sophisticated IP departments that keep their innovations and advanced Research and Development well protected.
Summarized from Down To Earth.
(The full article was first published in Down To Earth's print edition dated October 1-15, 2019)