Ms Ester H. Lim (Finnegan Shanghai) and Ms Angela Y. Dai (Finnegan Washington, D.C.) wrote a nice article about their take on IP in China for the WorldTrade Magazine called 'Policy Perspectives: The Current Reality with IP in China'.
It includes a discription of the case Merck & Co. versus Henan Topfond Pharmaceutical Co., about a patent on a hair-loss drug, which illustrates the importance of pratical applicabililty in China's Patent Law:
"Instead of risking infringement, Topfond challenged Merck’s patent at the Patent Reexamination Board of the State Intellectual Property Office of the People’s Republic of China. The Board found the Merck patent to be invalid based on China’s Patent Law and Implementing Regulations, which require that the patented invention have “practical applicability,” meaning that the invention can be made or used and can produce effective results. Because Merck never marketed the drug in China even though it had the patent since 1996, its patented drug failed to have any perceived practical applicability."
Read Ms Lim and Ms Dai's article here.