The Importance of IP In China Trade

Ryan Denson
Manager, International IP for the Global Innovation Policy Center (GIPC), U.S. Chamber of Commerce

Published

May 19, 2025

As the Trump Administration and China continue critical trade negotiations, the Chamber stresses the importance of the obliged reforms across the full range of IP assets in the Phase One Agreement. Despite positive steps by the Chinese government, many IP commitments remain unimplemented.

The problem: While China’s foundational laws and regulations on patents, copyrights, and trade secrets have been revised to match Phase One commitments on paper, implementation has fallen short in practice.

Pharmaceutical patents : China limits patent term extension eligibility to products approved in China before anywhere else, disadvantaging U.S. companies. Additionally, China’s patent office and courts have invalidated U.S. patents by refusing to accept post-filing data.
Internet piracy and counterfeiting : Inadequate efforts to combat online piracy and counterfeit trade of physical goods disadvantage American industries in Chinese markets.

Beyond Phase One: Broader structural issues continue to present an unlevel playing field for U.S. companies.

Lack of regulatory data protection: China provides no effective regulatory data protection (RDP) for pharmaceuticals, favoring domestically produced generics that infringe on innovative medicine patents. Though draft measures for RDP have been circulated, full protection would only be available for companies that are approved in China before anywhere else.
Market access restrictions and anti-monopoly remedies: Data transfer and storage restrictions and cyber-espionage to acquire sensitive IP are key features of unfair market practices, with increased use of administrative actions in IP-related matters.

The failure of China to fully implement IP commitments under Phase One has significant repercussions for American workers and businesses relying on IP-intensive industries. IP theft and limits to market access in China restrict U.S. industry’s ability to invest in innovation and expansion.

What China must do: As noted in the Chamber’s Special 30 and Reciprocal Trade / Unfair Trade Practices submissions, the Chinese government must:

Fully implement the Phase One Agreement, moving beyond promulgation to meet obligations regarding trade secrets, patents, copyrights, piracy and counterfeiting, trademarks, and judicial enforcement and penalties.
Align with international best practices by eliminating and clarifying onerous requirements in the patent, trade secret, and trademark enforcement system.
Enable judicial autonomy to protect companies against unfair state-led manipulation of China’s court system.

The bottom line: The Chamber is committed to working with the Trump Administration and industry to monitor and address China's unfair practices and lack of IP enforcement, demanding full implementation of its trade obligations.