The Influence of China's Trade deficit on IP Enforcement in China

Light at the end?
Photo: Danny Friedmann

Remember that in 2009, because of the financial crisis, the Supreme People's Court urged the lower courts to conservatively grant injunctions, read here. Now too, there are economic circumstances that might not be conducive to the enforcement of IPRs in China. For the first time in seven years China has a trade deficit. China has a huge trade surplus with the U.S. and Europe, but a trade deficit with countries such as Saudi Arabia and Australia, because they import so many commodities. Since commodity rich countries can only absorb so many Chinese export products, chances are that China will try to compensate its trade deficit with countries it already has a trade surplus, such as the U.S. and Europe. Therefore it might not be willing to import more trademarked, patented and copyrighted goods from the U.S. and Europe, which could stimulate a demand for counterfeit and pirated goods. Read more here.