China’s IP Value-Chain Measures Explained: How Patents Strengthen Key Industries

In China’s industrial chains, patents are often both a “chokepoint risk” and a “breakthrough lever”. When one upstream core patent is locked down, an entire chain can stall; when a portfolio of foundational patents works in concert, the industry can climb toward the high end of the value chain. In June 2024, China’s National Intellectual Property Administration (CNIPA) and eight other agencies issued the “Several Measures for Advancing Intellectual Property Strong-Chain and Efficiency-Enhancement in Key Industries” (hereinafter the Measures), tying the “patent chain” directly to the “industrial chain” for the first time.

1. Why the Measures were issued

The Measures are a supporting document for the key task of “advancing IP strong-chain and efficiency-enhancement in key industries” set out in the “Action Plan for Patent Transformation and Application (2023–2025)”. They were jointly issued by nine agencies — CNIPA, the Ministry of Education, the Ministry of Science and Technology, the MIIT, SASAC, the State Administration for Market Regulation, the National Financial Regulatory Administration, the Chinese Academy of Sciences, and the China Council for the Promotion of International Trade — and officially released on 21 June 2024.

The logic is straightforward: patents are a strategic resource in international competition, yet in many key industries IP remains scattered, weak and poorly coordinated — large firms hold core patents, SMEs struggle to access them, and industry–academia–research translation has too many gaps. The Measures use the IP system to reconnect the innovation chain with the industrial chain.

2. Reading the “one key, two focuses, three balances, four efforts” framework

One key

Focus on key industries and effectively leverage patents’ role as a rights nexus and information link, deepening the fusion of the patent chain with the innovation and industrial chains through joint creation, collaborative use, co-protection and integrated management.

Two focuses: strengthening and enhancing the chain

Strengthening the chain — build mechanisms for shared innovation resources, pooled patent risk and common benefit, reinforcing strategic IP layout and risk control to raise resilience and security. Enhancing efficiency — foster an integrated development pattern across large, small and medium enterprises, accelerating IP commercialisation and industrialisation of research results.

Three balances

Balance the needs of traditional, emerging and future industries; balance all types of players (lead firms, SMEs, universities, research institutes, service providers); and balance central-enterprise chains selected by national strategy with locally cultivated key-industry chains.

Four efforts

Strengthen high-quality IP creation, accelerate patent industrialisation, build collaborative IP development mechanisms, and coordinate international IP cooperation and competition.

3. Ten key tasks and the “dividends” for enterprises

The Measures deploy ten key tasks across four dimensions — strengthening foundations, raising efficiency, enhancing coordination and preventing risk. Three levers matter most for enterprises:

  • Key core technology breakthroughs and high-value patent portfolios: use multiple examination modes to build creation reserves in critical technologies.
  • Patent navigation and patent–standard synergy: establish patent-navigation mechanisms and promote fusion of patents with standards.
  • Industry IP innovation consortia and key-industry patent pools: clarify goals, formation and duties to integrate IP resources and lower licensing transaction costs.

The document also pledges guidance on patent-pool construction, avoiding redundant pools in the same field and promoting orderly, coordinated competition.

4. Relationship with the patent-transformation action plan

The Measures deepen and concretise the “Action Plan for Patent Transformation and Application (2023–2025)” along the “key industries” dimension. If the action plan is the master blueprint, strong-chain and efficiency-enhancement is a critical pipeline — turning patents from “certificates” into “industrial competitiveness”.

Innovators can also use our patent annuity monitor and trademark class search tools to manage and leverage their IP assets.

Frequently asked questions

Which industries do the Measures apply to?

They cover traditional, emerging and future industries, with emphasis on those critical to the resilience and security of supply and industrial chains, selected by central enterprises under national strategy and by local governments by regional reality.

What can SMEs gain from strong-chain and efficiency-enhancement?

Through IP innovation consortia and patent pools, SMEs can license patents at lower cost, join collaborative exploitation, and use patent navigation to avoid R&D and layout risks.

Will patent pools create monopolies?

The document explicitly promises guidance on patent-pool construction with a global view and no redundant pools in the same field — the aim is orderly, coordinated competition, not monopoly.

Source

China’s National Intellectual Property Administration (CNIPA), “Interpretation of the Several Measures for Advancing Intellectual Property Strong-Chain and Efficiency-Enhancement in Key Industries” (2024-07-29). Original: CNIPA · Policy Interpretation. This is a policy interpretation for reference only and does not constitute an official interpretation or legal opinion.

This article introduces the intellectual property system of the People’s Republic of China (China); please refer to the latest official regulations for specifics. For further assessment or consultation, contact Hefei Zhihai Yida Patent Agency (agency code 34408).

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