Opinion | China's enhanced IP protection for foreign enterprises will encourage their long-term and stable investment

Intellectual property (IP) protection for foreign enterprises in China is expected to be strengthened following the recent State Council executive meeting presided over by Chinese Premier Li Qiang on February 10, which will encourage their long-term and stable investment, Cai Tongjuan, Director of the Macro Research Department and Research Fellow of the Chongyang Institute for Financial Studies (RDCY) told China Youth Daily in an interview.

"A strengthened IP protection framework will make foreign companies more confident in the Chinese market." Cai said.

Cai further explained that IP protection has always been one of the key factors in foreign enterprises' investment decision. Many multinational enterprises are concerned that their technology, brands or trade secrets will be infringed in the Chinese market, especially in the context of frequent IP infringement cases. Therefore, strengthening IP protection means that the Chinese government has given more protection to the IP security of foreign enterprises, which can effectively alleviate the concerns of foreign enterprises. This will undoubtedly increase the confidence of foreign enterprises in the Chinese market and encourage them to increase their investment, research and development activities in China.

In terms of enhancing the international reputation of the "Invest in China" brand, Cai said that strengthening IP protection is not limited to the interests of foreign enterprises, but also helps to enhance the innovation confidence and international image of local Chinese enterprises. In the context of increasingly fierce global competition, countries that can strictly protect IP rights tend to be better recognized in the international market. This makes the "Invest in China" brand not only a label, but also a symbol of innovation, quality and integrity. With more investment from foreign enterprises, China can further build a strong "Invest in China" brand and attract more high-quality international capital.

"IP is one of the core assets of foreign enterprises in the global market. Strengthening IP protection will help increase the return on investment expectations of foreign enterprises." Cai said.

Cai added that long-term and stable IP protection can give foreign enterprises more confidence in long-term strategic planning, including the establishment of production bases in China. Such long-term and stable investment will not only help increase the market share of foreign enterprises, but also attract more foreign capital inflows, which will further promote the high-quality development of China's economy. (By Ma Ziqian/China Youth Daily)