China News Service: 

The U.S. administration accused China of lack of IPR protection and the so-called theft of intellectual property. What's your take on this issue? What measures will China take to further enhance protection of IPR, especially IPR owned by foreign enterprises in China?

He Hua:

Thank you for your question. First of all, the recent accusations by the U.S. administration about IPR protection show total disregard for China's improvement in the system for intellectual property rights protection, the sharp increase in China's innovation capacity and the fact that China has been a major IPR nation. Thus, the accusations are totally unfounded and untenable. The Chinese government has adopted a clear stand in regard to strengthening IPR protection. In his keynote speech at the Boao Forum for Asia Annual Conference 2018, President Xi Jinping announced China would strengthen protection of intellectual property rights as one of the important new measures for further expanding reform and opening up. In his address at the opening ceremony of the Summer Davos this year, Premier Li Keqiang reaffirmed China will implement a more rigorous IPR protection system to ensure law breakers pay an insufferable price for their IPR infringements, so as to propel more domestic innovation. These statements reflect the clear stand of the Chinese government in this regard.

China has the intrinsic requirement for strengthening IPR protection. China has come to a stage when its innovation capacity is rapidly increasing and innovation-oriented entities are developing fast. According to the "Global Innovation Index 2018" released by the World Intellectual Property Organization (WIPO) and Cornell University in July, China's ranking rose from 22nd in 2016 to 17th in 2018. Thus, it has broken into the world's top 20 most-innovative economies for the first time. Over nine out of every 10 Chinese invention patent applications are from domestic applicants. China filed 51,000 international patent applications via the Patent Cooperation Treaty (PCT) in 2017, ranking second in the world. In the first half of this year, nearly 80 percent of the invention patents granted by China were from domestic applicants and and nearly 70 percent of the invention patents valid in China were from domestic applicants. Therefore, strengthening IPR protection is the intrinsic requirement of China for its own development. Meanwhile, China's achievements with regard to IPR protection are widely recognized.

China treats foreign companies the same as domestic companies in regard to IPR protection. Its achievements are gaining increasing endorsement by the international community. Here are some statistics reflecting the progress made by China on IPR protection. First, foreign invention patent applications reached 650,000 over the past five years, up by an annual average of 3.1 percent; and foreign trademark applications reached 840,000 in the same period, up by an annual average of 10.3 percent. With these statistics, China has proved itself a country with a good national IP environment. Otherwise, such a big volume of applications would be unthinkable. 

The second data group: From 2012 onwards, the National Intellectual Property Administration has commissioned a third party to conduct a series of surveys on public satisfaction with China's protection of intellectual property rights. Last year's survey produced a satisfaction rate of 76.69 points. At the same time, the satisfaction level of wholly-foreign–funded enterprises secured a score higher than the general standard with 76.94 points, and joint ventures went even higher with 80.16 points. This would suggested a high degree of satisfaction and their consent to China's endeavor in IPR protection.

The third data group: An article published this year on the U.S. website--"The Diplomat"--revealed that foreign enterprises in China could win over 80 percent of the lawsuits concerning IPR infringements in the country. China has already been a destination for the IPR prosecutions from many multinational conglomerates.

Finally, Chinese companies paid US$28.6 billion for royalties of foreign patents in 2017. Among the amount, China held the biggest deficit in IPR royalties against the U.S., reaching US$5.07 billion. Such a big volume would be unthinkable without a good national IP environment. 

We will strengthen IPR protection in a stricter, more comprehensive, efficient and equal manner. To improve the strictness of IPR protection, we are working on amending the Patent Law and the Copyright Law, and setting up systems of punitive damages for all sectors related to IPR protection. To establish a comprehensive system of IPR system, we will mainly strengthen administrative law enforcement and judicial protection in accordance with the law, and also improve arbitration and mediation. To enhance the efficiency of IPR protection, we have set up 19 IPR protection centers across China to undertake review, determination and protection of rights faster in a more coordinated way. For example, it takes no more than seven to eight working days to obtain a decision on administrative punishment. To ensure equality, we will offer equal protection measures to all companies, whether they Chinese or foreign, big or small. Thank you.

Guo Weimin:

I believe reporters here have already witnessed the efforts the Chinese government has made to protect intellectual property rights (IPR). Officers from the National Intellectual Property Administration have done lots of effective work, like at least holding one IPR Promotion Week every year and a SCIO briefing to answer questions from the press.

Please go ahead and raise your questions.

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