White Paper Responds to U.S. Allegation of Weak IP Protection in China

Recently, the China State Council Information Office held a press conference to introduce and interpret the White Paper on the Facts and China's Position on China-US Trade Friction. Fu Ziying, China International Trade Representative (Pay Grade: Full Minister) and Deputy Minister of Ministry of Commerce made a brief introduction of the White Paper. Principal officials from the Ministry of Commerce, State Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Finance and China National Intellectual Property Administration also attended the press conference and answered questions from Chinese and foreign journalists.

In response to a question from the China News Agency on intellectual property protection, He Hua, Deputy Commissioner of China National Intellectual Property Administration, stressed that the U.S. government's criticism of China's weak intellectual property protection was groundless and untenable, selecting to ignore a multitude of solid facts that China has made progresses in the construction of intellectual property protection system for a long time, that China's innovation capability has been rapidly improved, and that China has become an intellectual property power.               

He said that China's inherent demand for intellectual property protection is right there. At present, China is in the stage of accelerating innovation capability and rapid development of innovation subjects. According to the “Global Innovation Index 2018” released by the Word Intellectual Property Organization (WIPO), Cornell University and INSEAD in July 2018, China ranks 17th, joining the rank of the top 20 most innovative economies for the first time. China's development has an inherent demand for intellectual property protection. China's achievements in intellectual property protection are palpable and widely discerned by international community.

The White Paper on the Facts and China's Position on China-US Trade Friction released by the State Council Information Office days ago is based on a large number of statistics and facts, offering detailed analysis and clarification on how to view the United States trade deficit with China and how to view the fair trade, technology transfer between Chinese and American enterprises, intellectual property protection in China, Chinese businesses venturing out, and China's subsidy policy.

The White Paper reports that China's resolve towards IPR protection is clear and firm. It has continued to reinforce protection through legislation, law enforcement and the judiciary, and achieved some notable successes. China built a fully-fledged and high-standard IP legal framework in a relatively short period, compared to the decades or more that developed countries had spent setting up similar legal systems. China has put in place a complete regime of IP protection, utilization and administration, spanning laws, planning, policies and enforcement agencies. 

The White Paper introduces that China adopts a dual-track protection system through which IP right holders can seek not only judicial but also administrative protection. The former State Intellectual Property Office (SIPO) has established a coordinated system with rapid review, rapid right verification, and rapid right protection, and built a nationwide 12330 network that provides assistance in defending rights and accepting reports and complaints. The patent, trademark and copyright authorities have carried out strong and proactive enforcement that has effectively defended the legitimate interests of IP right holders. In 2018, China restructured SIPO by combining the trademark and patent enforcement teams under one umbrella of market regulation, thus integrating and strengthening the power of enforcement.
The White Paper emphasizes that China will keep improving its laws and regulations on IPR protection, enhance the quality and efficiency of IPR reviews, and introduce the system of punitive damage compensation for intentional IPR infringements to significantly raise the cost of violations. China protects the lawful IPRs of foreign businesses in strict accordance with the law, and takes stern measures to address all types of IPR infringement cases.