¡@

Newsletters

Deep & Far Newsletter 2025 ©
Jul (2)

The Greater China IP Updates ¡V July 2025

By Lyndon 

¡@

China Assists SMEs that Have a Minimum of Five Class 1 Patents

Beginning in 2018, China’s Ministry of Industry and Information Technology (MIIT) introduced the Little Giants policy with the aim of building a network of innovative SMEs involved in strategic industries such as AI, robotics, semiconductors and more, and supporting them through financial and other measures.  By building globally competitive firms in such fields, the effect would be to build a strategically necessary import substitution focused set of technological firms that would counter the various restrictions that have resulted from the US curbs on exports of key strategic materials and technologies to China.  As of December 2024, six batches of Little Giants companies have been announced with a total of 14,600 SMEs qualifying to receive special concessions.  Only strategically important firms which can improve domestic supply chains are selected.  They must show sustained profitability and sound management as well as devote at least 3% of their operating income to R&D and must possess a minimum of five class 1 patents with visible monetary benefits.  Moreover, Little Giants must hold a domestic market share of at least 10% in their niche sector and have the ability to fix weaknesses in domestic supply chains.  This indicates that such firms are being encouraged to focus on the domestic market, at least for now, since the government wants to establish secure supply chains within the country.  With SMEs providing key raw materials and components for bigger Chinese firms with a global presence, de-risking of the upstream supply chains can occur and set the stage for China’s plans to achieve global tech domination.  Although there are headwinds such as the complications resulting from their operations being more likely to be driven by state and Party directives than market trends, the support from the state especially in the present economic downturn has been very helpful.  In the end, some winner firms will be prioritized and excess capacity will be curbed.

 

Differences between Filing an International Design Application through the Hague System and through China

Although the Chinese system is very similar, there are some differences worth noting as follows:

  1. Under the Hague Agreement, up to 100 designs can be included in one international application.  In China, only ten similar designs are allowed in one application.
  2. Under the Hague Agreement, all designs included in a single application must belong to the same class under the Locarno International Classification.  In China, all the designs must be related to the same product, and the design features must be identical or similar.
  3. Under the Hague Agreement, each design may be submitted with only partial views.  In China, each design must be submitted with an orthographic projection view of a side showing the essential design feature.
Under the Hague Agreement, it is only optional to include a description of the design.  In China, a description of the design is required, and it should include the characteristic features of the design to be protected.

 

 

 

 
¡@