Australian Businesses Operating in China: Proactive IP Protection
Published 12 June 2026
China has long been one of Australia’s most significant trading partners, with the commercial relationship between the two countries continuing to strengthen. As a result, many Australian businesses sell goods and services into the Chinese market or engage Chinese manufacturers to produce their products. For these businesses, protecting your intellectual property in China is not simply a formality, but a commercial necessity to appropriately conduct your business. The intellectual property landscape in China can be quite complicated, and therefore, it is important to be proactive in protecting your rights.
First-to-File
As outlined in a recent article written by my colleague, Riet van den Ende, China is considered a “first-to-file” country. This means, generally speaking, that the party who files an application first has the best claim to a trade mark. As at the end of 2025, there were more than 50 million trade mark registrations in China, with over seven million new applications in 2025 alone. In light of these statistics and that prior use of a trade mark in China generally does not afford you any rights, the potential for issues of infringement and confusion are very significant.
There is currently draft legislation in China to move away from simply being a “first-to-file” jurisdiction. However, exactly what form the legislation will be enacted in and the effect of any change to this position is yet to be seen. Therefore, it is important to consider your trade mark protection strategy in China as early as possible.
Chinese Name
Often when entering the Chinese market, businesses plan to seek protection only for their current name (in English). However, in order to yield the best results in the market, it is important to consider a transliteration of your English name into a term that can be easily pronounced in Chinese, as well as a Chinese name for your goods and services. In doing so, significant consideration should be given to the cultural aspect of your branding, including whether your branding in China is likely to be understood by consumers as having a positive connotation, such as relating to prosperity, good fortune, success, harmony, etc.
Relevantly, if a business neglects to create a transliterated version of its English name and/or a Chinese name, the market may well create one for you, which hopefully will be a favourable one. However, creating your own trade marks allows you to maintain control of your business’ branding and perception in the market.
Manufacturing for Export
Seeking protection of your trade marks is equally as important for businesses that are manufacturing products in China for export, even if they are not selling any goods in the Chinese market. It is possible to register your trade mark rights with Chinese customs, and customs have the power to seize goods that potentially infringe on registered intellectual property rights. Therefore, without any trade mark registration, at a minimum, this could lead to delays in export of your products from China, and at worst could lead to a costly and time-consuming legal dispute.
Trade Mark Squatting
In China, there has previously been a common practice whereby individuals would seek to register a trade mark belonging to a third party. At the time that third party seeks to enter the Chinese market, these individuals would use the trade mark registration to block it from doing so, and offer to sell their own trade mark to them for a profit. This practice is known as “trade mark squatting”. This issue can even arise where your business is manufacturing goods for export only, given the possibility of registering trade mark rights with Customs authorities.
The practice of trade mark squatting has steadily declined in more recent years, as a result of trade mark law in China becoming far stricter, including penalties for individuals, and even their representatives, for engaging in such practices. However, this can still cause very significant commercial upset when a business is looking to enter China as a new market or simply manufacturing goods for export.
Conclusion
Given the complexities of China’s intellectual property landscape, businesses should take a proactive approach to securing and enforcing their rights. Whether offering your goods and services for sale in China, or manufacturing products for export only, it is important to:
- seek protection of your trade mark(s) as early as possible;
- consider your overall branding in China, including a Chinese name and a transliteration of your English name; and
- register any rights with Chinese customs.
Being proactive in seeking overall protection of your brand in China will assist in avoiding unnecessary and costly disputes, as well as provide your business with greater commercial certainty when operating in a new market, benefiting your customer relationships and profitability.
If you have questions regarding trade mark protection in Australia or internationally, including in China, please reach out to MBIP. Our attorneys are experienced in protecting trade marks in Australia, New Zealand and around the world. In addition, our firm has a strong network of overseas associates who we can trust to act on overseas trade mark matters, where required.
