China steps up scrutiny of IP transfers to foreign firms on national security grounds
Tech exports and intellectual property transfers in certain areas will be subject to checks under new guidelines to ‘safeguard China’s key public interests’
China has tightened scrutiny over intellectual property transfers to foreign investors citing national security concerns, amid an escalating dispute with the United States over technology.
Under new guidelines issued by the State Council on Thursday, technology exports and IP transfers that are part of acquisitions made by foreign firms involving patents, integrated circuit layout design, computer software copyright and certain agricultural technology will be subject to national security checks.
The move is aimed at “improving the national security system” and “safeguarding China’s key public interests”, the State Council, China’s cabinet, said in the document.
Such transfers will be assessed in terms of their impact on national security and the country’s “key technology innovation capability in key areas”, it said.
While details of how the guidelines will be enforced have not been released, legal experts say the move shows China is elevating the importance of its home-grown technology and IP protection as it seeks to become a tech superpower by 2025.