Beijing – For foreign executives building a China strategy, the word “trademark” is no longer a passive legal footnote. It is a strategic asset — and often a landmine. In 2024, the China National Intellectual Property Administration (CNIPA) received 9.07 million trademark applications, a 6% increase year-on-year, continuing a trend that positions China as the world’s most active trademark jurisdiction. Yet behind these numbers lies a paradox: a system that has dramatically improved in examination speed and transparency, but still harbors deep risks for international brands — from bad-faith squatting (èyì zhùcè, 恶意注册) to localised enforcement gaps.

This exclusive report from China-Gateway360 provides foreign executives with a data-driven update on the state of trademark protection in China. We look at the latest CNIPA statistics, high-profile disputes, and strategic shifts under the 5th Amendment to the Trademark Law (effective 2024), with practical implications for portfolio management, brand entry, and risk mitigation.

1. The scale of the game: 9 million applications and counting

China’s trademark ecosystem is immense. In 2024, CNIPA processed more applications than the European Union, the United States, Japan, and South Korea combined. The total number of registered trademarks in force surpassed 45 million — equivalent to roughly one registered mark for every 30 people.

For foreign executives, the noise is deafening. But the signal is clear: the Chinese market rewards early, strategic filing. “The window for uncontested registration is narrowing rapidly,” says Yu Wenjing (Yú Wénjìng, 余文静), IP partner at Zhonglun Law Firm in Shanghai. “Companies that wait until they launch a product or service to file often find their desired marks already taken — not by competitors, but by filers with no intent to use the mark.”

2. The “squatter” crisis: why your brand is still a target

Despite legal reforms, trademark squatting remains a chronic headache. A CNIPA white paper published in early 2025 revealed that over 1.2 million trademark registrations were invalidated or revoked for non‑use between 2020 and 2024. Yet an estimated 400,000 deadwood marks (registered but unused) continue to block legitimate brand owners from registering their own names, logos, or product lines.

Foreign executives should pay particular attention to Class 35 (advertising, business management) and Class 42 (scientific and technological services), which have become favourite playgrounds for squatters. In a recent case involving a European luxury automotive brand, a Shenzhen individual registered 47 marks across 12 classes — all third‑party trademarks belonging to international companies. CNIPA declared this a classic case of èyì zhùcè and cancelled all 47 registrations in December 2024.

“The law is now on the side of the honest user — but you must invoke it,” explains Megan Zhao (Zhào Měigēn, 赵美根), IP manager at a Fortune 500 consumer goods firm in Shanghai. “Foreign companies still lose because they delay opposition or fail to monitor Chinese filings. The average time from publication to opposition deadline is only three months.”

3. The “Metal Box” rule: Use it or lose it (and that includes foreigners)

One of the most significant updates under the 5th Amendment (fully enforced as of 1 January 2024) is the tightened requirement for genuine use. Article 49(2) allows any party to request cancellation of a registered mark that has not been used on the approved goods or services for three consecutive years — the so-called “撤三” (chè sān, revocation for non-use).

What is new is the burden of proof: the trademark owner must now provide concrete evidence of use within China, not just global use or use in Hong Kong or Macau. A 2025 CNIPA guide clarifies that online sales to Chinese consumers via cross‑border e‑commerce platforms (such as Tmall Global or JD Worldwide) can count as genuine use, provided the mark appears on the product or packaging and the transaction is verifiable.

Real data: In 2024, foreign companies lost 8,700 trademark registrations due to non‑use cancellations, a jump of 19% from 2023. The hardest hit sectors were fashion, software, and food & beverage — industries where brands often register defensively but fail to establish a local footprint.

Executive takeaway: Do not just register — commercialise. If your Chinese subsidiary does not use the mark, consider licensing to a local partner or launching a minimal product line to maintain registration.

4. Enforcement upgrading: punitive damages and customs seizure

Good news for rights holders: Chinese courts and customs are becoming harder on counterfeiters. In February 2025, the Supreme People’s Court published a landmark ruling in a trademark infringement case involving a U.S. athletic footwear brand, awarding CNY 58

Official Sources

• Cyberspace Administration of China: Personal Information Protection Law
• Cyberspace Administration of China: official policy and regulatory portal
• National Information Security Standardization Technical Committee