On March 10th, 2023, the National People's Congress of the People's Republic of China approved the plan to restructure the State Council. The plan includes significant changes in the area of intellectual property. Here, we briefly discuss the key points and provide our thoughts.

Firstly, the China National Intellectual Property Administration (i.e., China's Intellectual Property Office) will be separated from the State Administration for Market Regulation and established as a direct agency under the State Council. This means that the CNIPA will be renamed as the State Intellectual Property Office (also known as SIPO). This elevates the China IP Office's position within the national administrative structure as direct agencies are specialized bodies directly managed by the central government, with independent powers and responsibilities. The IP office will have more comprehensive powers and corresponding regulatory frameworks in the field of intellectual property protection, which reflects the central government's high regard for intellectual property management.

Secondly, the responsibility for trademark and patent enforcement will remain with the State Administration for Market Regulation, with guidance from the SIPO. Despite the separation of the IP Office from the State Administration for Market Regulation, the two bodies will maintain close links. The State Administration for Market Regulation will continue to be responsible for intellectual property administrative enforcement, which can leverage their strengths in law enforcement.

Thirdly, the plan aims to accelerate the construction of a strong intellectual property country and comprehensively enhance the level of intellectual property application, protection, management, and service. In addition to strengthening intellectual property protection in traditional areas such as IP application and litigation, the Chinese government will also strengthen institutional and talent development in areas such as intellectual property transfer, licensing, and use, in an effort to accelerate the construction of a strong intellectual property country.

Overall, the restructuring plan emphasizes the importance of intellectual property and highlights the Chinese government's commitment to intellectual property protection and development. We believe that the changes will promote a more robust intellectual property regulatory framework and contribute to the growth of the intellectual property industry in China.

If you need further information or have any question, please feel free to contact David Liu at DavidLiu@changtsi.com or contact your usual counsel. We would be happy to advise.