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The fundamental issues that exist today are whether the Chinese Government will recognize that strong intellectual property protection and enforcement is integral to sustained economic growth and the extent to which the Government is prepared to commit resources to intellectual property protection at the expense of other needed reforms. Chinese Government’s Strategy on Intellectual Property: The perceived deficiencies in China’s current intellectual property protection and enforcement strategy has more to do with enforcement rather than the establishment of new intellectual property laws. Therefore, it remains to be seen what priority China will give intellectual property in view of the overall economic environment of today’s China. Moreover, as China continues to develop as a growing economy it must address the education, house and health and retirement needs of its growing work force.
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Most foreign companies that do well in China focus mainly on low cost manufacturing and export rather than domestic sales.
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Current Economic Environment in China: Demand for consumer products will remain low as the vast majority of Chinese people are involved in agriculture and do not have the extra savings to purchase non-essential goods. Here is some food for thought that may help you decide to enter China or continue a wait-and-see approach. Lindsay Esler and Annie Tsoi of Deacons discuss some interesting factoids regarding intellectual property in China in Developing an Intellectual Property Protection Strategy for Today’s China. Without a clear signal from China that it is ready to protect and enforce intellectual property rights, a wait and see approach may still be in order.
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Deciding on how to approach intellectual property protection in China remains a dilemma that will not subside until a decision can actually be reached. However, there is little evidence to date to suggest that foreign companies looking to do business in China can protect their technology from the rampant copying that occurs in the world’s fastest growing economy. Many bloggers and writers have expressed that China is making progress with regard to the enforcement of intellectual property in China.
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