On March 6, 2026, the Director of China’s National Intellectual Property Administration (CNIPA) Shen Changyu published an article in Qiushi regarding commercialization of intellectual property (大力促进知识产权价值实现). Qiushi (求是), meaning “Seeking Truth,” is the official bimonthly theoretical journal of the Communist Party of China (CPC) Central Committee, published in Beijing. As a premier ideological publication, it communicates CPC policies, governing philosophies, and articles from top leaders, including Xi Jinping, to guide political and ideological action. Shen’s article is a policy-level acknowledgment that China’s IP system, while producing large volumes of patents, has not yet achieved proportional commercial and industrial returns.
Shen states that China’s IP system has grown rapidly since the launch of a three-year special action for patent transformation and utilization in 2023. Some of the figures Shen cites:
- A centralized inventory of 1.349 million existing patents from over 2,700 universities and research institutions was completed for the first time.
- Cumulative patent transfer and licensing registrations nationwide reached 1.458 million, with 189,000 originating from universities and research institutions.
- The industrialization rate of invention patents from universities reached 10.1%; for research institutions, 17.2%.
- The transaction value of technology contracts involving patents reached 1.18 trillion yuan in 2025.
- In 2024, the added value of patent-intensive industries reached 18.04 trillion yuan, or 13.38% of GDP.
- By end of 2025, China held 5.32 million valid invention patents, with 1.534 million in strategic emerging industries.
Despite these numbers, Shen is candid about the gap with developed economies. The EU’s patent-intensive industries account for 18.4% of GDP — 5.02 percentage points higher than China’s figure. Regional imbalances within China are also pronounced: the Yangtze River Delta, Beijing-Tianjin-Hebei, and Guangdong Province together hold roughly two-thirds of all valid invention patents nationwide.
Shen identifies five categories of obstacles to patent commercialization, each framed as a distinct problem:
1.“Cannot be transformed.” Some patent applications are filed primarily for project completion, qualification certification, or assessment purposes rather than with industrial application in mind. This creates a mismatch between supply and demand, with insufficient high-value patents available for commercialization.
2.“Unwillingness to transform.” The transformation process is long and multi-stage — concept verification, pilot-scale maturation, productization, and large-scale production — with risks at each phase. Uncertainty around technology maturation, market conditions, and financial returns reduces researchers’ motivation.
3.“Not daring to transfer.” Without a sound due diligence exemption and fault tolerance mechanism, researchers fear that mispricing of innovative achievements during patent transfer could trigger accusations of state-owned asset loss.
4.“Not knowing how to transform.” IP transformation requires transaction matching, technology maturation support, and professional services in legal, technical, and business negotiation. Many innovation entities lack these capabilities.
5.“Inconvenience in transfer.” Low service levels among IP transfer and transformation service agencies and an underdeveloped ecosystem hinder effective industrialization.
Shen outlines several lines of reform:
Revenue distribution reform. The government plans to continue adjusting how IP revenues are shared among institutions, researchers, and technology transfer agencies. IP transformation outcomes are to become a factor in talent evaluation and professional title assessment, aiming to reduce institutional reluctance.
Due diligence and fault tolerance. Improving exemption mechanisms to address the fear of state-owned asset loss during patent transfers from universities and research institutions.
Revitalizing university and research institution patents. By end of 2025, these institutions held 1.215 million valid invention patents. The government intends to deepen inventory work, improve pre-application evaluation systems focused on industrialization prospects, and build dynamic databases of transferable patents.
Building the IP factor market. In 2025, China’s IP royalty trade reached 425.4 billion yuan, IP-backed bank loans totaled 297.9 billion yuan, and IP securitization products exceeded 42 billion yuan cumulatively. IP insurance provided over 190 billion yuan in risk protection for nearly 42,000 enterprises. The plan calls for further development of IP valuation, financing, securitization, and insurance instruments.
Industrial chain integration. The government will support patent-intensive industries, build IP innovation consortia and patent pools in targeted fields, and foster synergy between standards and patents. Specialized services will be directed toward high-growth and specialized SMEs.
Public services and AI. China has established 519 national-level IP public service institutions. The article notes plans to explore the use of large-scale AI models to facilitate patent transformation, connecting university patent supply with SME technology demand.
International dimension. Under national security safeguards, the government will encourage overseas patent holders and foreign-invested enterprises to implement patented technologies in China, and explore patent sharing with Belt and Road Initiative and BRICS countries.
The original text is available here (Chinese only).
