China's IP in Foreign Eyes

  • In May 2015, China State Council announced the "Made in China 2025" policy, which focuses on building indigenous capabilities in high-end precision manufacturing, with semiconductors as the first priority segment. The goal of this policy is to have China increase its self-sufficiency rate for integrated circuits to 40 percent by 2020 and to 70 percent by 2025.

    ——A New World Under Construction: China and Semiconductors,  McKinsey


    Chinese semiconductor enterprises focus to strengthen their development, management, and protection of intellectual property. They should develop a systematic approach to identifying, choosing, and executing an IP strategy. 

  • China has fined five knock-off Disney hotels for infringing on the iconic U.S. entertainment company's trademarks in the run-up to the opening of a Walt Disney Co theme park in Shanghai. The news comes less than a month after Chinese authorities announced that they would give unprecedented special trademark protection to Disney in a year-long campaign around the park's opening.

    ——China fines five phony Disney hotels, by Reuters


    Recently, the State Administration for Industry and Commerce of China ordered that taking stronger action to protect the trademarks of Disney, which reflects that China pays more attention to intellectual property protection. This movement shows that Chinese government fulfills their promise, and defends the legitimate interests of right holders like Disney efficiently.

  • Huawei, China's top smartphone maker, says it has found a way to speed it up 10 times faster than current batteries. The company said its new technology changes how lithium ions are stored and move inside the batteries -- increasing charging speed. Huawei said it's "confident" the discovery will lead to big changes in mobile phones, electric cars and wearable devices, among other things.

    ——This smartphone battery charges 10 times faster, CNN


    Huawei pay attention to the new technology R&D all along. Owing to outstanding innovation ability and reasonable Intellectual property layout, Huawei has been becoming a world-leading smartphone manufacturer. The new technology of smartphone batteries reflects that Huawei has been one of the leaders in mobile industry. 

  • Chinese companies are going on their biggest global spending spree ever, with a marked change in strategy from buying resources to hunting for manufacturing expertise and financial companies. Out are purchases of commodity assets as the nation's consumption of raw materials slipped, while in vogue are assets that infuse its companies with know-how and new technology.

    ——China Goes West Shopping for Assets as Xi Transforms Economy, Bloomberg


    Overseas merger is a channel for Chinese companies to transforming and upgrading their products. Many Chinese companies are eager to move up the value chain and that encourages them to pursue acquisitions of companies that could enable them to access advanced technologies, strong brands."

  • When we look ahead, though, we see broad swaths of opportunity. Our analysis suggests that by 2025, such new innovation opportunities could contribute $1.0 trillion to $2.2 trillion a year to the Chinese economy—or equivalent to up to 24 percent of total GDP growth. To achieve this goal, China must continue to transform the manufacturing sector, particularly through digitization, and the service sector, through rising connectivity and Internet enablement.

    ——Gauging the strength of Chinese innovation,mckinsey


    The recent development of economy have shown that China is passing through a transition: the labor-force expansion and surging investment that propelled three decades of growth are now weakening. Nevertheless, China will have evolved from absorbing and adapting existing technology and knowledge from around the world, enhancing the capability of self-innovation, into a global innovation leader.

  • A Scottish bus manufacturer has signed a deal potentially worth £2bn to build vehicles for the world's biggest producer of electric buses. The agreement between Alexander Dennis Limited (ADL) and Chinese firm BYD came during the UK state visit by Chinese president Xi Jinping. The initial deal is for the manufacture of 200 single deck buses a year. The initial contract represents turnover of about £660m over the next 10 years.

    ——Falkirk-based Alexander Dennis signs bus deal with China's BYD,  BBC news


    The agreement between BYD and ADL opens a new chapter on Sino-British new energy vehicle industry. ADL is the UK's biggest bus manufacturer, employing 2,500 globally. The deal expresses the recognition of BYD's technological innovation capabilities, which shows the emerging influence of Chinese enterprises in overseas market.

  • The toys are made by a Chinese firm while this factory isn't in China, but in rural Andhra Pradesh, in southern India. It is one of more than 100 businesses in the Sri City Industrial hub - many of them Chinese - attracted by the Make in India campaign. 

    ——The Chinese firms opening factories in India, BBS news,


    After many years' business overseas, Chinese companies are no longer satisfied with the export of products. A lot of Chinese companies are now taking advantage of a new wave of innovation and new business overseas, putting their manufacturing facilities there and catering to the oversea demand. It's the continueous innovation and technology uograding that enabled Chinese firms win the oversea market on the process of "going out". 

  • The quality of China's carmakers gap with foreign rivals is closing. The Chinese firms are busy hiring Western designers to make their models more distinguished.
    ——China's carmakers, zoom, zoom, splutter,The Economist
    The government had hoped that, by now, domestic firms would have absorbed all they needed to know from the foreigners about making and selling world-class cars, and be ready to get by without them. While it's clear that, the government's ambition for China to boast two or three world-class car firms, with badges as recognisable as Toyotas or Fords, remains a long distance. 

  • Lei Jun, co-founder and chief executive of Xiaomi, sat down with The Wall Street Journal."Former Qualcomm global senior vice president Wang Xiang joined Xiaomi in July. He’s in charge of our IP. We should be able to make progress in this. Xiaomi pays great attention to innovation. Last year we applied for 2,700 patents. This year’s goal is 4,000."
    ——'It Had Better Get Bloodier:' Q&A with Xiaomi’s Lei Jun on China’s Smartphone Battle, by Wall Street Journal
    Patents are more important for Chinese smartphone manufacters because of the fierce competition in domestic market and the demand for expanding overseas market. The active patent layout strategy of Xiaomi reflects that smartphone makers of China pay more attention to Intellectual Property.

  • China will build enough charging stations by 2020 to satisfy power demand for five million electric vehicles.The move is the latest effort to refuel the new energy vehicle sector, which has seen explosive growth in the past two years due to subsidies and tax cuts.
    ——China to build charging stations to power electric cars, by Times of India
    In recent years, sales volume of new energy vehicle sector in China grows rapidly. In 2014, China sales 75 thousand new energy vehicles, 2.5 times more than last year. Meanwhile, the industry of new energy vehicles makes advances.Products from Chinese enterprises based on independent innovation, such as BYD and BAIC are welcomed by the consumers. With the widespread construction of charging station, the new energy vehicle industry may get into another high-speed track of development.

  • With a name like Leaf Creener (a literal translation of her Chinese name, Ye Zi) and cloting that ranges from a yolk-yellow Rosie Assoulin panrsuit at noon to a lacy Civenchy evening gown after dark, surely you can make an impression during New York Fashion Week. And that's exactly what the Beijing-raised, Shanghai-based Ms. Greener has in mind.
    ——A Chinese Social Media Star Comes to Fashion Week, The New York Times
    Fashion in China is changing, it was about logos and labels before, but now people are interested in local young designers. There are more contemporary fashion labels available for ordinary people. Chinese young designers are more likely to pay more attention to color and the bling feature, trends of fashion, and they become more sophisticated and elegant in design. Obviously, that's the new start of oriental style design going abroad.

  • If EDF moves forward, it will be supported by two Chinese companies, China General Nuclear Corporation and China National Nuclear Corporation, the government said. Britain has been courting Chinese companies to help finance the new Hinkley point nuclear plant, wchich will cost at least £ 16 billion.
    ——Britain says it will aid planned nuclear plant, The New York Times
    Britain strongly backs construction of new nuclear plants. It views nuclear energy as a low-carbon of power generation useful for meeting its targets to reduce carbon dioxide emissions. With utility lacking the expertise and financial strength to build a nuclear plant, the British government has turned to international financing. And Chinese nuclear enterprises are its priority not only for their advanced technology but also for their remarkable investment. And with innovation and safe technology, Chinese nuclear companies are becoming increasingly popular.

  • Looking for a toehold in the world's largest smartphone market, Google hopes to return to mainland China as early as this fall in what would mark a major detente. The Internet giant is seeking approval for a China version of its Google Play app store.
    ——Google plans to return to mainland China, report says, USA TODAY
    As part of the deal Google is looking to strike, Google would follow the country's laws and block apps that the government objects to Major Chinese technology companies such as Baidu and Tencent control most of the apps distribution in mainland China. Xiaomi, dubbed the "Apple of China," has launched its own app store and phones.

  • Chinese internet giant Tencent has taken a $50m stake in Canadian mobile messenger Kik Interactive. Kik is hoping the investment will help boost competitiveness and emulate WeChat's success in North America. The Canadian start-up is particularly popular with teenage users and has been looking for a strategic partner for some time.
    ——China's Tencent takes $50m stake in messaging app Kik, BBC News
    Young Americans are a large group with unmet needs. Tencent was the best partner because its messenger service WeChat allows users not merely to connect with friends but also integrates options like shopping, ordering taxi and playing game. That is to say, endless innovation to meet the need of market is the most competitiveness of Tencent.

  • The U.S. market is the largest in the world for premium phones and while the P8 lite isn't, as the "lite" name suggests, Huawei's top notch flagship, it's thin and light and it boasts impressive specs for the price. Huawei Device USA president Zhiqiang Xu says his company wants to triple its global market share from about 5% to 15%.
    ——Huawei P8 lite, Chinese maker's inexpensive new U.S. smartphone, USA Today
    Huawei is a Chinese Hi-tech company with serious designs on the U.S. market.Huawei launched the mid-tier P8 lite smartphone not only for its aggressive price but also for its comprehensive function. Endless inovation leads to priceless brand, that is the value of Huawei. 

  • One of Alibaba's priorities is making "Western goods accessible to Chinese consumers," says Wed bush Securities analyst Gil Luria. The company announced Macy's will launch an online flagship store in China through its Tmall shopping service.
    —— Alibaba to buy back up to $4B in shares, USA Today
    In the "Internet +" era, overseas shopping network is also blooming, battle among various e-commerce is surging. To cooperate with well-known Macy's together to create the overseas online shopping platform, Alibaba will meet the strong need of Chinese customers, which is a wise move to the trend of overseas online shopping as well as a wise choice to expand the brand to overseas.

  • Once confined to the streets of Chinatowns and the homes of immigrants, Chinese New Year has made inroads into the American mainstream. China decides to tout Chinese New Year around the globe as a vehicle for bolstering the country's still-limited soft power. The audiences that Beijing is most keen to impress with its international cultural promotion drive are not international, but are rather domestic Chinese audiences.
    ——Beijing uses Chinese New Year to push China's soft power, by Los Angeles Times
    China will be exporting more culture and reversing the tide with foreign culture pouring into China. As a civilized country with a rich history, ethnic unity and cultural diversity, China is going to place itself in the center on the world cultural stage.

  • In terms of enforcing intellectual property rights and cracking down on pirated goods, China has been pushing in this direction for many years. I think there is some recognition, at least on the part of the central government, that China wants to develop strong industry with intellectual property rights, with software and pharmaceuticals, they need to have stronger protection domestically. 
    ——Alibaba Head Downplays Dispute With Chinese Regulator, by Voice of America
    Chinese authorities have been keeping an eye on the protection of intellectual property. In recent years, China has been strengthening intellectual property enforcement, and fighting against patent and copyright infringement. Under its efforts, China now has a well-organized market and innovation environment.

  • China is not about to hollow out. But if it is to keep growing fast, it must become more innovative. At present Chinese innovation is a mixed bag. There are some outstanding private firms. Frugal engineers at private companies such as Mindray, which makes medical devices, and Huawei, a telecoms giant, are devising technologies that are cheaper and sometimes better than their rich-world equivalents. Manufacturers operating near China's coast, whether home-grown or foreign, are adept at "process innovation"—incrementally improving the way they make things. And China's internet start-ups, such as Tencent (a social-networking service) and Alibaba (an e-commerce company), have had a genius for copying Western business models and adapting them to the Chinese market. Fresh thinking that creates value people will pay for.
    ——If China is to excel at innovation, the state must give entrepreneurs more freedom, by The Economist.
    Innovation and intellectual property are strategic resources and core elements of a state's economic development. In recent decades, more and more innovative firms have made great contribution to China's development. China should broaden the approach of innovation, to make enterprises core actors of innovation.

  • Since the 1980s, China has experienced unprecedented economic growth, fueled by abundant low-cost labor, high saving and investment rates, substantial market reforms, outward-oriented policies, and prudent macroeconomic management. But favorable demographics alone will not bring about the kind of growth that has made China the world's second-largest economy. Its leaders now hope to achieve high-income status by developing more technologically sophisticated industries. As a result, China has pulled ahead.
    ——India's Chinese dream, by
    China's development has been relying on innovation and intellectual property more than low-cost labor. As a model to India and other developing countries, China should put more in scientific and technical innovation and intellectual property, to maintain the advantages in economic development.

  • A Chinese chip design company has submitted a $23 billion bid for Idaho-based Micron Technology. If the deal goes through, it would be the largest Chinese purchase of a U.S. company……Tsinghua Unigroup offered $21 a share for Micron, almost 19% over its Monday closing price.
    ——Report: China company bids $23B for Micron, USA Today
    The undoubted fact of Micron's falling profits offered an oppurtunity for Chinese chip companies. And huge investment in chip technology and technology advantage enabled Chinese companies like Tsinghua Unigroup become the highlight when "going out" of China.

  • Alibaba, a Chinese e-commerce giant that recently went public in America, is explicitly courting foreign SMEs. A recent success story involves sales of imported fresh foods on its Tmall portal. …… But a clever collaboration with Tmall helped his farmers reach customers even in smaller Chinese cities, boosting sales over fourfold in the past year to over 600 tonnes.
    ——Foreign entrepreneurs in China, The Economist
    An encouraging development for smaller firms is the rise of e-commerce in China. Going directly to online sales lets foreign newcomers build a national brand far more quickly and cheaply than through bricks-and-mortar outlets.

  • India's trade deficit with China averaged around USD 47 billion in last year's trade of over USD 70 billion. China is trying to address the issue by promoting mutual investments to balance the trade. We should try to combine "Make in India" and "Made in China" strategy together. The key word in India-China relationship is development, which is a major factor of our cooperation.
    ——China wants to combine "make in India" with "made in china",by the Hindu
    China has already made itself a great reputation for "made in China". To keep the pioneering advantages for longer, China should cooperate with other countries to further expand international market. Besides, "made in China" has been a model and target for developing countries to follow and cooperate with.

  • China is trying to connect more than 20 countries along the ancient Silk Road under a grandiose program christened "One Belt, One Road". For many countries along the route, China's ambitions could bring a welcome economic boost. China's efforts to implement this initiative will likely have an important effect on the region's economic architecture-patterns of regional trade, investment, infrastructure development-and in turn have strategic implications for China, the United States, and other major powers.
    ——China's Ambitious "Silk Road" Plan Faces Hurdles, by Voice of America
    As an important measure to promote regional economic development, "One Belt And One Road" shows China's international influence. To make a mutual benefit and win-win community along the ancient Silk Road, China will devote greater effort in technological innovation and intellectual property, patticipate and lead international industrial cooperation and competition.

  • The boss of the Chinese internet firm Alibaba, Jack Ma, has told US businesses that his company wanted to help small US businesses sell their wares in China.  Alibaba already accounts for 80% of all Chinese online consumer shopping and is looking to expand abroad. Mr. Ma said he eventually wanted40% of sales to come from outside China.
    ——Alibaba boss Jack Ma in US charm offensive, by BBC
    Alibaba's growth highlights the challenges for Chinese companies. As an international business-to-business marketplace, Alibaba has made charm offensive by its outstanding IP innovation and culture. Thus, Alibaba may just be the first of a new wave of international Chinese brands.

  • China's heyday as the "world's factory" is fading as labor costs rise and export demand has faded. To address that and other challenges, the world's second-largest economy has unveiled a plan to beef up its presence as a global manufacturing power. "Made in China 2025".
    ——World's Factory Aims for Upgrade With "Made in China 2025", by VOA News
    The campaign focuses on a host of problems, including a lack of high-quality goods or strong international brands. The model that China has pursued over the last 30 years, which had a major element of export-oriented production based on low labor costs, will not be sustainable. It aims to move China higher up the manufacturing chain by focusing more on innovation and cutting-edge technology.

  • Netflix is in discussions with a handful of Chinese media companies to explore how it can bring its streaming service to China, a development that has the potential to increase its subscriber counts but also faces significant challenges.
    ——Netflix Said to Be in Early Talks With Chinese Companies, The New York Times
    Netflix is seeking to bolster its international presence after experiencing slowing growth in the United States. As regards the huge potential and competition of market in China, the first aiming at China is reasonably an important part of Netflix's broader quest to expand to the world. 

  • China's Lenovo, the world's biggest personal computer maker, has reported a 20% rise in full-year revenues. Revenues for the year to the end of March rose to $46.3bn, with the firm's mobile phone business contributing some $9.14bn of the total.
    ——China's Lenovo sees full-year revenues rise 20%, BBC News
    Lenovo's revenues have been helped by the purchase of Motorola in 2014, which has made it the world's third-largest smartphone maker. Lenovo bought Motorola and IBM's low-end server unit last year in an attempt to diversify beyond the PC business. All these shows Lenovo is trying to reform for a new breakthrough.

  • If Apple were simply a hardware-maker, there would be reason to worry. It is losing market share to rivals such as Samsung of South Korea and Xiaomi of China, which make cheaper devices, and to Google's Android operating system, which runs on 71% of the world's smartphones.
    ——Apple's future: Reluctant reformation, by Economist
    Innovation and reform has always been the ladder of development and progress for enterprise. In the global smartphone market, Samsung and Xiaomi meet opportunity as technology innovators, and create enormous pressure to Apple on smartphone market, undoubtedly a big hit to those who stick to the market without further innovation.

  • Huawei has unveiled its latest flagship phones with cameras that it says are capable of creating "professional" looking photos and videos. The firm said a mix of an advanced sensor and optical image stabilisation tech offered superior night photos and the ability to create "light painting" effects with real-time previews.
    ——Huawei says P8 phones have 'professional' camera features, by BBC News
    According to the statistics of WIPO in 2014, ranking the first on the list of the most PCT patents application enterprises, Huawei is undoubtedly the leader of the smartphone makers in China. Huawei's effort to differentiate a great-looking device from the sea of similar smartphones is the real reason that Western consumers still perceive it as being a "value-for-money brand".

  • Some are already making the leap, with Hebei Steel Group, looking to build a 5-million-tonne-per-year steel project under a joint venture in Africa. Beijing has already rolled out measures to broadly encourage the foreign expansion of Chinese industry including simplifying currency rules and making it easier to raise money through bond markets, with sectors such as nuclear at the forefront of the drive overseas.
    ——China steel firms turn overseas as domestic woes mount, by the Economist.
    As the world's No.2 economy entity, China does not lose its developing momentum. Following the pace of nuclear industry, China's steel mills appear to be obvious candidates for overseas expansion. Investing abroad will not only have positive impact on Chinese steelmakers in seeking new growth, but also be a main solution to improve China's economic.

  • We believe more and more Chinese consumers would be willing to pay more for food with healthy attributes in order to keep fit. Some local brands have been using that as a selling point to challenge their international rivals. Drinks maker Jiaduobao, which is challenging Coca-Cola Co and PepsiCo, claims its canned herbal tea drink can put out internal "fires", in a nod to traditional Chinese medicine. hat is something we are advising clients to do a lot more, and it's something you're going to see more of going forward.
    ——Health-conscious Chinese challenge Western food firms, by Reuters.
    With the economy developing, health has become the number one concern of Chinese consumers, and premium brands have always been concerned about. Never before have brands changed so fast and fundamentally as in China. Chinese consumers are making new demands of international food brands, posing challenges for Western firms already grappling with slower sales and intense competition in the world's most populous nation.

  • Aided by foreign technology acquired during three decades of development, China has the highest number of reactors being built and ambitions to export its home-grown models to an overseas market worth hundreds of billions of dollars.Reflecting the obstacles of breaking into a market dominated by the likes of France's Areva and Russia's Rosatom State Nuclear Energy Corp., Beijing is encouraging consolidation to cut internal rivalry and pool intellectual property and financial resources.
    ——"Made in China" nuclear reactors a tough sell in global market, by Reuters
    Intellectual property right is a core advantage for the development of China's nuclear power. China still has huge amounts of work to do before it can become a nuclear powerhouse, including rolling out Hualong I and other models with full intellectual property rights at home. China needs to show it has wonderful intellectual property right to sell its new designs abroad.

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