Discussions about China’s treatment of intellectual property have recently intensified in Washington, with some policymakers weighing more drastic measures to counteract perceived abuses. While concerns about China’s approach to IP are justified, some commonly repeated claims mischaracterize the problem — potentially leading to policy decisions that could backfire on American innovators.
As policymakers consider responses to these challenges, it’s critical to ground the discussion in accurate information and strategic policymaking. That’s why we’re taking a closer look at widely circulated claims about China’s IP practices to ensure that U.S. policy responses are fact-based, effective, and supportive of American innovation:
| Claim: China denies U.S. innovators patent protection while exploiting the U.S. patent system against American companies. |
| In reality: U.S. companies can and do receive patents in China — in 2023, nearly 50,900 patent applications were filed in China by U.S. innovators. However, that isn’t to say that these patent rights are strong and reliable. China’s judicial system is often opaque, and critical legal decisions regarding patents are not regularly published. This makes it difficult for companies to predict how their patents will be treated in court and gives the Chinese government plausible deniability to excuse domestic companies accused of IP infringement.
The distinction between not granting patents and granting ones that cannot be effectively enforced is critical. Instead of framing the issues as a blanket denial of U.S. patents, policymakers should focus on demanding greater transparency and accountability in China’s IP enforcement system and on seeking justice for American businesses who are not fairly treated in Chinese courts. Strengthening U.S. competitiveness requires targeted solutions to not risk retaliation against American firms. |
| Claim: China abuses the U.S. patent system, and we should reciprocate by restricting their access. |
| In reality: While Chinese firms do obtain many U.S. patents, this does not mean that the U.S. patent system is being weaponized against American companies. According to recent research from the Sunwater Institute, the United States has one of the lowest rates of wrongly granted patents in the world, indicating that we already do well at getting foreign innovators to play by our rules.
Our existing patent system and strong enforcement practices have been hugely beneficial to our nation’s economy, powering our historic global leadership in innovation. Weakening these protections in an effort to mirror China’s restrictive policies would ultimately harm American inventors, leaving them with less protection and worse treatment in global markets. Instead of eroding our own system, we should demand that China’s system becomes as transparent as the United States and treats all rights holders equally, ensuring that American innovators continue to benefit from strong patent protections both at home and abroad. |
| Claim: China’s economic success is built in no small part on stolen U.S. intellectual property. |
| In reality: This is true: China’s track record of stealing American IP is real, extensive, and well-documented. According to the FBI, Chinese IP theft is estimated to cost the U.S. economy up to $600 billion per year. China also regularly features on the U.S. Trade Representative’s annual Special 301 Report and Notorious Markets Report for engaging in anti-IP practices such as forced technology transfer and counterfeiting.
Protecting U.S. businesses from Chinese IP theft is a critical priority for policymakers. However, the severity of this threat makes it even more important for the U.S. to pursue carefully designed, strategic responses. Overly broad restrictions could lead to unintended consequences, such as retaliation against U.S. companies abroad or the weakening of key international IP agreements that benefit American innovators. |
By ensuring that U.S. policies are factually and strategically sound, lawmakers can better protect American innovation while maintaining the country’s leadership in the global intellectual property landscape. Thoughtful, well-crafted approaches will be key to safeguarding U.S. businesses, fostering innovation, and strengthening international IP protections.