I. Policy Background and Strategic Positioning

In recent years, as Chinese enterprises have actively expanded into overseas markets, foreign-related intellectual property (IP) disputes have shown a sustained upward trend. These disputes are becoming increasingly complex and diversified, particularly in key industrial sectors such as high-end manufacturing, new energy, biomedicine, artificial intelligence, and the digital economy. Some countries, driven by economic competition or even political motives, have abused IP enforcement procedures to impose technical blockades, administrative barriers, and discriminatory judicial decisions, thereby exerting suppressive pressure on Chinese companies. These unfair restrictions under the guise of intellectual property have seriously disrupted the normal international business operations of Chinese enterprises and undermined the stability of China’s “going global” strategy.

At the same time, Chinese companies still face numerous challenges when dealing with overseas IP disputes. For example, they have limited access to foreign IP policy and legal information, lack sufficient professional legal services in foreign-related matters, and often do not have a sound internal IP management and risk control mechanism. In the face of overseas litigation, they frequently lack effective strategies and the capacity to respond. This is especially true for small and medium-sized enterprises (SMEs), which are under greater cost and risk pressures in cross-border rights protection.

In order to address these challenges and to build an IP protection system aligned with the goals of high-level opening-up, the State Council issued the “Regulations on the Handling of Foreign-Related Intellectual Property Disputes.” The Regulations serve as a key institutional measure to implement the Outline for Building a Leading Intellectual Property Power (2021–2035) and the 14th Five-Year Plan for the Protection and Utilization of Intellectual Property. Through the systematic design of information early warning, response guidance, compliance management, trade investigations, and countermeasures, the Regulations establish a complete governance framework of “prevention before the event – response during the event – counteraction after the event.” This marks a strategic shift in China’s foreign-related IP policy, moving rapidly toward institutionalization, standardization, and leadership.

II. Core Content Analysis

Information Services and Risk Warning Mechanism (Articles 4 & 5)

This mechanism establishes a “perception system” for foreign-related intellectual property (IP). The China National Intellectual Property Administration (CNIPA), the Ministry of Commerce, and other relevant departments will, according to their functions, regularly collect and release information regarding changes in foreign IP laws and regulations, major case developments, analysis of hot topics, and risk alerts. This provides timely, authoritative, and actionable references for the public and enterprises. By building a national-level public service system for overseas IP information, the mechanism integrates government information release, enterprise-targeted search services, and societal knowledge sharing, thereby creating a dynamic IP risk alert ecosystem.

Notably, this mechanism is expected to connect with national platforms such as “Zhinaozhen” (Smart Compass), offering enterprises a one-stop information service to enhance their compliance and risk assessment capabilities prior to going global.

Response Guidance and Rights Protection Support Mechanism (Article 6)

This mechanism serves as the organizational safeguard for responding to foreign-related IP disputes. Relying on the “Overseas IP Dispute Response Guidance Center” system, relevant departments under the State Council will establish and improve working procedures, and coordinate legal, industry, and foreign-related service resources to provide enterprises with tailored response strategies, legal assistance matching, and document drafting support. This initiative breaks the previous model where enterprises had to “fight alone” and strengthens the government’s role in coordinating and supporting overseas rights protection.

Particular emphasis is placed on expanding service coverage and improving precision. A nationwide network of response guidance nodes will gradually be formed, with presence at the provincial level and coverage in key industries, benefiting more SMEs and innovation-driven enterprises.

Diversified Dispute Resolution Mechanism (Article 7)

This article aims to improve the efficiency and reduce the costs of resolving foreign-related IP disputes by explicitly encouraging the use of commercial mediation, arbitration, and other non-litigation means. Such alternative methods offer greater flexibility and timeliness, especially in low-value but high-frequency cases.

Judicial administrative authorities will work to improve the infrastructure of foreign-related mediation institutions, establish procedural rules and a professional mediator pool, and guide enterprises to prioritize non-adversarial methods for swiftly resolving disputes and minimizing losses. This mechanism also reflects China's broader reform agenda of building a diversified and modern international dispute resolution system.

Professional Services Development Mechanism (Article 8)

This mechanism, supported by favorable policies, encourages law firms and IP agencies to establish overseas branches or engage in joint operations, thereby enhancing China’s presence and voice in the global IP legal services market. Judicial and IP authorities will provide supportive conditions for “going global,” including qualification recognition, data interface access, and foreign-related training resources.

This initiative promotes the internationalization of China's legal service industry and is expected to further elevate China’s professional influence in areas such as international IP representation, compliance consulting, and litigation services, forming a system-based support for enterprise globalization strategies.

Compliance and Evidence Export Review Mechanism (Article 13)

This mechanism clarifies procedural requirements for organizations or individuals to provide evidence or data to foreign parties in litigation or administrative investigations. It emphasizes strict adherence to relevant approval procedures related to national security, personal information protection, and technology export controls, ensuring that China’s core interests are not compromised by foreign judicial requests.

This article responds to the increasing legal risks enterprises face when submitting cross-border evidence and strikes a balance between cooperation in litigation and safeguarding national security, demonstrating high practical relevance.

Trade Investigation and Unfair Conduct Response Mechanism (Article 14)

This article authorizes the Ministry of Commerce to investigate and take measures against behaviors such as IP infringement through imports, unreasonable clauses in technology licensing agreements, and foreign countries’ failure to grant Chinese nationals national treatment. This essentially establishes China’s “IP trade remedy toolkit,” enhancing institutional capacity for external legal countermeasures.

Functionally, it is comparable to the United States’ Section 337 investigations and will serve as a legal instrument for China to counter technical trade discrimination, helping maintain fair competition for Chinese enterprises in global markets.

Countermeasures and National Security Protection Mechanism (Articles 15–17)

These articles define China's sovereign right to respond when facing discriminatory or politically motivated foreign IP-related actions. Relevant departments of the State Council may, based on the Foreign Relations Law, National Security Law, and Anti-Foreign Sanctions Law, place involved entities or individuals on a countermeasure list and implement sanctions such as asset freezes, transaction restrictions, and market entry bans. Furthermore, the regulations explicitly prohibit any domestic organization or individual from assisting in enforcing such foreign discriminatory measures, reinforcing national sovereignty and legal dignity.

This mechanism demonstrates China's legal resolve to safeguard national interests in the context of globalization and serves as a key tool to counter the extraterritorial application of foreign laws.

III. Response and Transformation of Key Stakeholders

The implementation of the Regulations will have a structural impact on various stakeholders, including enterprises, law firms, intellectual property (IP) service agencies, and cross-border platforms. Enterprises are expected to proactively establish internal compliance systems and enhance their capacity to respond to cross-border litigation. Law firms and IP agencies will benefit from policy support to expand their foreign-related business and should accelerate the development of internationally competent legal talent. Meanwhile, cross-border e-commerce platforms should serve as key nodes for compliance education and rights protection support by strengthening services for merchants, assisting government efforts in risk monitoring, and jointly contributing to the formation of a Chinese regulatory framework in international competition.

IV. Trend Outlook and Institutional Prospects

Looking ahead, as technological competition intensifies and the global economic governance system undergoes transformation, the governance of foreign-related intellectual property is expected to enter a “deep-water zone.” On the one hand, intellectual property will continue to be used as a tool for market control and policy pressure, making the external compliance challenges and institutional asymmetries faced by Chinese enterprises increasingly complex. On the other hand, as China's institutional frameworks become more mature and its legal service system more robust, the country will gradually develop a systematic, forward-looking, and globally-oriented IP strategic capability, with its role in global IP governance continuing to rise. The continued implementation and future iterations of the Regulations will be a key step in China's journey toward becoming a leading intellectual property power and enhancing its institutional soft power on the international stage.