China unveils rule to counter ‘discriminatory’ measures in international IP disputes

The regulation, aimed at striking back against external ‘containment and suppression’, appears to target the US and EU – without naming them

Reading Time:3 minutes

China is strengthening its trade defences and countermeasures as it faces pressure to protect its growing overseas assets. Photo: AFP

Published: 6:22pm, 19 Mar 2025Updated: 10:00pm, 19 Mar 2025

China has unveiled a new weapon that it says is to fight discrimination against its citizens or organisations in international intellectual property disputes.

The State Council, the country’s cabinet, said a new IP rule would come into effect on May 1 as part of a set of regulations on the settlement of foreign-related intellectual property disputes, and would counter attempts at external “containment and suppression” in such cases.

Although the regulation does not single out any country, it appears to target the US and European Union, which have accused China of intellectual property (IP) rights infringement and forced technology transfer in trade disputes. Beijing has denied those accusations.

According to the regulation, in cases where a foreign government “uses intellectual property disputes as an excuse to contain and suppress China, takes discriminatory restrictive measures against Chinese citizens and organisations, and interferes in internal affairs”, Beijing may act according to the Foreign Relations Law and Anti-Foreign Sanctions Law.

Chinese entities facing foreign intellectual property lawsuits or legal investigations should comply with Chinese laws on state secrets, data security, protection of personal information and technology export management when sending evidence to foreign authorities, according to the rule.

It also states that Chinese entities should request approval to send evidence if required under Chinese law.