The Numbers
Recent statistics from CNIPA (January–June 2025) reveal a significant shift in China’s patent landscape. The invention patent grant rate stood at 55.32%. Compared to the same period in 2024:
- Invention patent grants dropped by 159,187 cases (down 28.75%)
- Utility model grants fell by 209,832 cases (down 21.71%)
- Design patent grants increased slightly by 9,503 cases (up 3.12%)
Breaking it down by applicant type:
- Individual invention patent grants declined 46.98%
- Enterprise invention patent grants declined 28.32%
- University invention patent grants declined 26.65%
- Research institute invention patent grants declined 21.66%
Utility model grants saw a similar downward trend, with declines across all applicant types.
The Shift
CNIPA has been tightening examination standards to steer domestic applicants toward higher-quality filings, aiming to reduce “low-value” patents. While overall application volumes have shown modest growth, weaker applicants—often individuals or smaller organizations—have seen the sharpest declines.
This reflects a broader transition from quantity-driven filing to a quality-focused approach, influenced by:
- Policy changes such as the removal of certain government subsidies
- Examination reforms to raise patent quality and eliminate abnormal filings
- Applicant maturity, as companies increasingly view patents as strategic assets rather than mere numbers
- The mindset is evolving from “I need more patents than my competitors” to “Every patent should deliver tangible business value.”
Drivers of Change
Leading Chinese companies have demonstrated that a strong, high-quality portfolio is far more valuable than sheer volume. Success stories from Huawei, Xiaomi, and others—both domestically and abroad—have underscored the importance of well-crafted claims and enforceable rights.
Some companies have learned the hard way. For example, Hanshow Technology disclosed in its Shenzhen Stock Exchange IPO prospectus (November 15, 2024) that it had already spent USD 3.77 million on patent litigation in the US and Europe, with potential additional costs up to USD 7.95 million—totaling around RMB 117 million. Cases like this highlight the critical need for strategic, high-quality filings, especially in overseas markets.
Cost pressures are another driver. With market uncertainty, companies are looking to trim expenses, including legal service costs. Filing more patents no longer brings additional funding, even for state-owned enterprises, reducing the incentive to maintain low-value portfolios.
Impact on Domestic Firms
Grant rates have become a key selection metric for applicants when choosing IP firms. Patent attorneys now invest more time in prior art searches, detailed drafting, and collaboration with inventors to address stricter examination standards—often increasing case handling times by 20–30%.
Impact on Foreign Firms
Chinese companies are becoming more selective in their choice of overseas counsel. Previously, only large corporations cared who handled their foreign filings—most focused solely on cost. Today, even smaller applicants want their Chinese agents to recommend trusted foreign counsel before initiating international filings.
Looking Ahead
As stricter Chinese examinations elevate the quality of priority filings, overseas applications from China will likely see improved enforceability and strategic value. While this evolution may be gradual, it presents an opportunity for law firms—both domestic and international—to grow alongside their clients in this new quality-driven era.
