Impact of China's Current IP Policies on Multinational Enterprises

This report provides an in-depth analysis of China's current policies on intellectual property (IP) protection, focusing on their implications for multinational enterprises (MNEs) operating within the country. The report addresses key questions regarding the effectiveness of these policies in safeguarding MNEs' intellectual property, comparing China's IP protection to other countries, and assessing the legal environment's role in protecting MNE interests. It highlights the impact of IP policies on various aspects of MNE operations, including human resource management, business processes, and competitive advantage. The report explores the legal framework, including trademarks, copyright protection, patents, and trade secrets, and discusses how the legal environment, including government agencies and regulations, influences business activities. The analysis draws on academic research and provides insights into the challenges and opportunities for MNEs navigating China's IP landscape. The report emphasizes the importance of IP protection for fostering innovation and economic growth, providing a comprehensive overview of the current state of IP protection in China.

CHINA'S CURRENT POLICIES ON IP PROTECTION
China's current policies on IP protection
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CHINA'S CURRENT POLICIES ON IP PROTECTION
Q: Research China’s current policies on IP protection. Discuss the impact
of the current IP policies to an MNE doing business in China.
The intellectual property rights which are currently protecting the MNE’s in China.
The existing IP rights being used deliberately for the growth and development of the Global
multinational enterprises. The existing rich cultural heritage of China are also protected with
the help of the IP policies (Holmes et al., 2016). The global multinational enterprises have a
huge impact on the economy of China. Human resources are better recruited due to the
security purposes which worked effectively to reduce the IP thefts. The IP violations were
going beyond the control of the Chinese government. The business processes of the MNE’s
were heavily impacted due to the successful implementation of different IP protection
policies.
The most major security problem of the MNE’s in China is the IP leakage which is
very well tackled with the help of the intellectual property policies. The critical complexities
were minimized after the application IP policies (Huang, Geng & Wang, 2017). The business
models of the MNE’s can no longer be replicated by the rival organizations. Reputation and
the profitability of the MNE’s was increased successfully with the help of the IP policies.
Q2: How does China rate against other countries in protecting IP of an
MNE?
The intellectual properties of MNE’s in China are of very high order as it includes strict
IP policies such as the Trademarks, Copyright Protection Acts, Patents and Trade secrets. The
other countries of the world also sometimes follow these successful strategies. The violations
of intellectual property laws are also higher in China. MNE started their operations in China
also. The patent is considered in most of the countries outside China also. Protection of the

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patented inventions had an impact not only in China but also other parts of the world. The
desired outcome of the IP policies was so good that other Corporations which work on other
nations started their operations in China as well.
China is one of the major sources of IP theft in the whole world. The registration of the
IPR is different in European countries. Conditional protection is important aspect of IP
policies in China (Garcia et al., 2016). The business collaborations with the MNE’s of other
countries were successful after the successful incorporation of the IPR laws. The
complexities of the non-Chinese companies were reduced due to a huge extent.
How is the legal environment in China dealing with the protection for an
MNE?
The legal environment in China includes government agencies, laws and policies,
pressure groups which influence and limit various business organizations or individuals. The
protection of the MNE’s is a huge aspect in China. The laws which are passed by the
government of China to regulate their business activities are effectively protecting the
business models and the other types of business activities. The protections come in all
formats such as economic and social development as the business needs and requirements can
also be analyzed, stringent regulations involving taxation is understood very well by the
MNE’s (Jiao, Koo & Cui, 2015). The macro and the micro economic factors of the MNE’s in
China such as the interest rates, inflation, unemployment are also maintained very
professionally by the legal environments in China. Fresh opportunities in the MNE are one of
the outcomes of the efficient implementation of the legal environment in China. Thus it can
be said that the legal environment is dealing very well for the protection of the MNE’s in
China.

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Reference
Garcia, A., Jiang, J., Turley, C., & Wang, M. (2016). The evolving environment for
intellectual property tax management in China. In Economic Impacts of Intellectual
Property-Conditioned Government Incentives (pp. 205-233). Springer, Singapore.
Holmes Jr, R. M., Li, H., Hitt, M. A., DeGhetto, K., & Sutton, T. (2016). The Effects of
Location and MNC Attributes on MNCs' Establishment of Foreign R&D Centers:
Evidence from China. Long Range Planning, 49(5), 594-613.
Huang, K. G. L., Geng, X., & Wang, H. (2017). Institutional regime shift in intellectual
property rights and innovation strategies of firms in China. Organization Science,
28(2), 355-377.
Jiao, H., Koo, C. K., & Cui, Y. (2015). Legal environment, government effectiveness and
firms' innovation in China: examining the moderating influence of government
ownership. Technological Forecasting and Social Change, 96, 15-24.