China Reports Strong Growth in Patent Commercialisation

China reported significant growth in patent transfers, licensing, industrialisation and intellectual property financing following its three-year Special Action Plan for Patent Commercialisation and Utilisation.

Source: CNIPA and the State Council Information Office, Special Action Plan for Patent Commercialisation and Utilisation: Data Snapshot.

Introduction

China implemented the Special Action Plan for Patent Commercialisation and Utilisation from 2023 to 2025 to improve the practical use of patents and strengthen connections between universities, research institutions and businesses.

According to official data released in March 2026, the programme met its main targets and supported increased patent transfer, licensing, financing and industrialisation.

1. University and Research Patents

Authorities reviewed and assessed approximately 1.349 million patents held by more than 2,700 universities and research institutions.

Around 680,000 invention patents with commercialisation potential were identified and matched with approximately 460,000 enterprises.

Between 2023 and 2025, around 80,000 invention patents originating from universities and research institutions were successfully industrialised.

2. Increased Patent Transfers and Licensing

China recorded approximately 1.458 million patent assignment and licensing registrations during the implementation of the programme.

In 2025, the transaction value of technology contracts involving patents reached RMB 1.18 trillion, representing year-on-year growth of 18.8%.

These figures indicate that patents are increasingly being treated not only as legal rights, but also as commercial assets that can support investment, cooperation and market expansion.

3. Support for Businesses and Industrial Development

Nearly 9,000 high-growth small and medium-sized enterprises were identified for targeted patent-industrialisation support.

Authorities also promoted intellectual property development across more than 300 specialised industrial chains and established nearly 300 industry intellectual property operation centres.

Patent pools and innovation consortia were also developed in key sectors to support technology cooperation and industrial development.

4. Intellectual Property Financing

The programme also expanded the use of intellectual property as a financing asset.

Since the programme began, approximately RMB 600 billion in intellectual-property pledge financing was issued. Intellectual-property insurance coverage reached RMB 56 billion, while intellectual-property securitisation products exceeded RMB 14 billion.

5. International Technology Transactions

In 2025, China’s imports and exports of intellectual-property royalties reached RMB 425.35 billion, increasing by 6.7% year on year.

Exports of intellectual-property royalties increased by 26.3%, reflecting stronger international commercialisation of Chinese technology and intellectual-property assets.

Implications for International Companies

The continued development of China’s patent commercialisation market may create opportunities for foreign businesses, investors and research organisations.

International companies may consider:

Licensing Chinese patents or technologies;
Cooperating with Chinese universities and research institutions;
Acquiring patents relevant to Chinese manufacturing or market entry;
Conducting ownership and validity due diligence before transactions;
Recording patent transfers and licence agreements correctly; and
Assessing freedom-to-operate and competition risks before commercialisation.

Strategic Recommendations

Companies considering patent-related transactions in China should:

Conduct legal and technical due diligence before acquiring or licensing patents.
Verify ownership, validity, scope and recorded encumbrances.
Define territorial, technical and commercial licence terms clearly.
Register patent transfers and complete applicable recordal procedures.
Review employee, commissioned-development and joint-development ownership arrangements.
Coordinate licensing decisions with freedom-to-operate and enforcement analysis.

For assistance with Chinese patent licensing, ownership review, technology transactions or due diligence, contact the Reehor IP team.

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