CHINA’S LEGAL FRAMEWORK
The current legal system of China is the result of evolution of culture, economy, society and politics. Despite the fact that China is a country with very long history, the modern Chinese legal system can only be traced back to the transplantation of western laws. In the beginning of 20th century, facing the crisis of colonization, China began her painful reform of the society and transplantation of modern law, which followed the model of civil law countries such as Japan and Germany. After 1949, the Soviet law casted huge shadow on Chinese law too. And in the past 36 years, China took the rout of “socialism market economy”, to which the rule of law is essential. In order to meet the requirements of economy, China introduced civil and commercial law from developed countries and established its currant legal system. Like in other civil law countries, Chinese laws are mostly statutory laws. With the constitution as the basis, the legal system consists of department laws such as civil law, commercial law, criminal law, administrative law, labour law, economics law and procedural laws (civil, criminal and a dministrative), etc.China’s legal system is largely a civil law system, although found its root in Great Qing Code and various historical system, largely reflecting the influence of Continental European legal systems, especially the German civil law system in the 19th and early 20th centuries. China’s legal system covers laws that fall under seven categories and three different levels. The seven categories are the Constitution and Constitution-related, civil and commercial, administrative, economic, social, and criminal laws and the law on lawsuit and non-lawsuit procedures. The three different levels are state laws, administrative regulations and local statutes.
Intellectual Property in China
Intellectual property rights have been acknowledged and protected in China since the 1980s. China has acceded to the major international conventions on protection of rights to intellectual property. Domestically, protection of intellectual property law has also been established by government legislation, administrative regulations, and decrees in the areas of trademark, copyright, and patent. This has led to the creation of a comprehensive legal framework to protect both local and foreign intellectual property. In 1980, China became a member of the World Intellectual Property Organization (WIPO). It has patterned its IPR laws on the Berne Convention for the Protection of Literary and Artistic Works and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Trademarks, patents, copyrights, trade secrets (know-how), geographical indications, and plant breeders’ rights are all recognized forms of IP that can be protected under Chinese law.
Patent in China
Patent law in modern mainland China began with the promulgation of the Patent Law of the People’s Republic of China,[1] in 1984. In 1985, China acceded to the Paris Convention for the Protection of Industrial Property, followed by the Patent Cooperation Treaty in 1994. In order to obtain patent protection in China, the inventor or the owner of the invention has to file a Chinese patent application. The China National Intellectual Property Administration (CNIPA) is the government authority that receives and examines patent applications. Three types of patents are granted in China: invention patents, utility model patents (sometimes called “mini-patents”) and design patents. Patents are granted to the ‘first-to-file’ rather than the ‘first-to-use’, meaning timely patent protection in China for each and every innovation is absolutely crucial. Patents for inventions can be protected for up to 20 years in China. China also provides protection for utility models (for up to 10 years).
Trademark in China
In China, trademarks protect symbols, colours or other devices used to identify a business’ products or services. There are two routes to obtain trademark registration in China: 1. international registrations: a WIPO filing in any third country plus a China-specific designation; or 2. national filing in China: a national trademark application in China with the China National Intellectual Property Administration (CNIPA). China follows the Nice Classification system of goods and services for trademark protection but also applies a unique system of subclasses. The protection scope of the trademark in China is then based on the classes and specific subclasses under which it is registered. The entire China trademark process can take quite a long time to complete, with an average of 20-24 months. Additional delays can also be expected if there is opposition to the trademark.A trademark is valid for ten years, then may be renewed indefinitely for further ten-year periods.
Industrial design in China
In China, the design registration is called design patent and is protected along with invention and utility model on the basis of Chinese Patent Law. On 1 June 2021, the fourth amendment to the Patent Law of the People’s Republic of China entered into force, which made important changes in many aspectsDesigns are covered by the Chinese Patent Law with protection for a maximum of 15 years. To protect the appearance, shape or configuration of your product, you can apply for a design patent yourself, or (recommended) through a representative (e.g. a patent agent), directly to the CNIPA. The term for filing an industrial design application in China claiming priority is six months from the date of priority. As of 1 June 2021, China has introduced partial design protection though until the change is fully implemented applications can only be made in paper form or offline. The most important requirement is the novelty of the design. In China, the novelty must be absolute, which means that a design must not have been published anywhere in the world before the date of application.
Copyright in China
China Copyright Law protects against the dissemination of a work on information networks without permission or remuneration. Furthermore, technological protection measures may be used to restrict the unauthorised access of copyrighted works including software and audio and video recordings. Copyright owners do get automatic protection through Chinese law. However, it is recommended that copyrighted work is filed (known as ‘copyright recordal’) at the Copyright Protection Centre of China for a fee. Copyright recordal is voluntary but helps to provide evidence of copyright ownership before a court or relevant enforcement authority. For software, parts of source code may be redacted (obscured) in the copyright recordal to protect trade secrets. In most cases the copyright term is the life of the author plus 50 years, but for cinematographic and photographic works and works created by a company or organization the term is 50 years after first publication.
IP enforcement in China
The main options for enforcing your IP rights in China include administrative action, customs seizure and civil litigation. The State may prosecute offenders under the Criminal Law for several types of severe infringement. There are four levels of courts: the basic people’s court, the intermediate people’s court, the high people’s court and the Supreme People’s Court (SPC). In addition, there are four intellectual property courts: the Beijing IP Court, the Shanghai IP Court, the Guangzhou IP Court and the Hainan Free Trade Port IP Court. In most cases, an IPR that has not been registered in China may not be enforced in China. However, an owner of an unregistered IPR may claim against the infringer for unfair competition under the Anti-Unfair Competition Law of China as unfair competition is not based on any registered IPRs. The U.S. Patent and Trademark Office has established IP offices in China to advise and assist U.S. companies in protecting their IPRs, initiating bilateral dialogues with Chinese authorities, and conducting diplomacy in China.
Eleven Facts About China You Might Not Know
1. Late sunrises
China is a huge country with only one time zone! That’s why in some places the sun rises even at 10:00 AM. In the past China has 5 different time zones. But in 1949 the Communist Party leaders decided to set one time for the whole country. Since then, everybody is using an official Beijing time.
2. New Year’s fiesta
New Year is the biggest holiday in China. It is celebrated on January or February, and it’s the real holiday for everybody. Almost nobody is working, every one is going back home to celebrate this happy time with their families. Chinese New Year celebration lasts for 15 days! Nothing can be compared to this. It’s really unusual that the whole country is having a holiday for such a long time.
3. Mathematical geniuses
It isn’t a big secret that Chinese people are one of the best in mathematics in the world. History of mathematics in China dates back to 11th century BC! Thanks to China, we know today the number 0, the decimal and binary systems, geometry, trigonometry and algebra.
4. Architectural geniuses
It is a commonly known fact that the world’s biggest man made structure is situated in China. The Great Wall is not visible from the space but it’s still impressively long — 8,850 km (5,500 miles). The most famous imperial palace in China called The Forbidden City has more than 9,000 rooms!
5. Longest continuous civilisation in the world
China is the world’s longest continuous civilisation. It began about 6000 BC and lasts until today.
6. China builds a skyscraper every five days.
According to the published research, China has more than 200 skyscrapers that are over 150 meters tall under construction. In the next five years, China plans to build more than 800 skyscrapers. By 2030, there are planned to be more than 1,500 new buildings that are over 150 meters tall in cities of China.
7. China has the world’s longest sea-crossing bridge.
The Hong Kong–Zhuhai–Macau Bridge is the longest sea-crossing bridge in the world. The total length of the bridge is 55 kilometers (34 miles), including a 6.7-kilometer (4.2-mile) tunnel.
8. Confucianism was a leading philosophy in ancient China.
Existing for more than 2,500 years, Confucianism is an ancient belief system, which had an influential impact on Chinese culture. It focuses on inner virtue, morality, and respect for the community and nature. Its founder, Confucius, was a great philosopher and teacher, who lived from 551 to 479 BCE. His teaching, thoughts, good behavior, and ethics were written down by his students in a book called “Lun Yu” or “The Analects of Confucius”.
9. Different colors have different meanings in China.
In Chinese culture, colors have lucky and unlucky meanings. Red is the favorite of the Chinese people. It means good luck and happiness. White is related to death and funerals. Yellow is regarded as the royal color in ancient China.
10. China has lucky numbers and unlucky numbers.
In China, numbers that sound like words with lucky meanings are considered lucky numbers. The numbers 8, 6, and 9 are lucky numbers. ‘Eight’ (八) in Chinese is pronounced ba and sounds similar to fa (发/發) as in facai (发财), meaning ‘well-off’ or ‘becoming rich in a short time’. The number 4 is an unlucky number because its pronunciation (si) is similar to the word for ‘death’ in Chinese. Read more about Chinese lucky numbers.
11. There are more than 400 substyles of Chinese Kung Fu.
Chinese kung fu is also known as martial arts or wushu. It is an important part of Chinese culture. Chinese kung fu is a large system of theory and practice. It combines techniques of self-defense and keeping healthy. There are more than 400 substyles of kung fu. The most popular kung fu styles include taijiquan (tai chi), qigong, Shaolin kung fu.
Bud & Prairie helps your business navigate China’s laws and regulations. Our solutions manage and process your issues, as well as enhance your potentialities. Partnering with Bud & Prairie means a quick, cost-effective, and compliant way to grow at the Chinese market.
China employment and human resources
The Labour Law of the People’s Republic of China is a law of China which has been enforced since 1995. It was promulgated by the Standing Committee of the National People’s Congress of China on July 5, 1994, and came into effect on January 1, 1995. This Labour Law is the basic labour law of China. The Ministry of Human Resources and Social Security of People’s Republic of China is a ministry under the State Council of China which is responsible for national labor policies, standards, regulations and managing the national social security. The concept of human resource management in China was only adopted beginning in the 1990s as a foreign import. The evolution of China’s human resource management reflects the transition from a command to a market economy.
📝 Contract Formation and Enforcement in China
According to the Chinese Civil Code, the parties shall have the right to enter into a contract on their own free will, and no unit or person may unlawfully interfere. The parties shall observe the equitable principle in defining each other’s rights and obligations. When the parties conclude a contract in written form, the contract is established when both parties have signed it, affixed their seals thereon or have affixed their fingerprints thereon.The contract should be enforceable in a Chinese court with jurisdiction over the defendant. This normally means jurisdiction in a court in the district where the defendant has its principal place of business. The National People’s Congress of China and its Standing Committee have the ultimate authority to interpret law and to enforce the Constitution. As China is a civil law jurisdiction, courts have no formal power to make law in the sense that judicial decisions are not binding precedent.
📅 China public holidays
| Date | Description |
| 1 Jan | New Year’s Day |
| 22 Jan | Spring Festival |
| 5 Apr | Qingming Festival |
| 1 May | Labor Day |
| 22 Jun | Dragon Boat Festival |
| 29 Sep | Mid-Autumn Festival |
| 1 Oct | National Day |
🏦 Construction and Projects in China
▪ Shanghai World Financial Centre: The world’s second-tallest building resembles a bottle opener, built at a cost of $1.1 billion.
▪ Hangzhou Bay Bridge: The world’s longest trans-oceanic bridge extends across the Hangzhou Bay to over 35.673 kilometres (22 miles). This architectural wonder cost $1.70 billion.
▪ Three Gorges Dam: The world’s largest power station in terms of installed capacity (18,200 MW), built at a cost of $ 40 billion.
▪ Shanghai Yangtze River Tunnel and Bridge: Crossing the Yangtze River, linking Shanghai with its island-county of Chongming, built at a cost of $1.84 billion.
▪ South-North Water Transfer Project: Built at a cost of $62 billion, diverting 44.8 billion cubic meters of water per year from the Yangtze River in southern China to the Yellow River Basin in arid northern China.
▪ Baltic Pearl Project: Built at a cost of $1.3 billion – China’s largest foreign development project in Russia.
▪ Beijing International Airport Terminal: One of the world’s busiest airports, built at a cost of $3.5 billion.
▪ Chengdu Shuangliu Airport: The busiest airport in Western China and the 6th busiest airport nationwide in terms of passenger traffic, built at a cost of $1.9 billion.
Request a Proposal
Why choose Bud & Prairie?
Bud & Prairie offers a full complement of services in all areas of IP law and other legal practices, including without limitation patents; trademarks; copyrights; industrial designs; IP litigation; anti-counterfeiting and enforcement; and licensing, due diligence, and contract review. Our strong technique fields include bio-chemistry, biotechnology, pharmaceutical, superconductor devices and systems, civil engineering, electrical engineering, mechanical engineering, electronics, computer software, telecommunications, information technology, communications, media, construction.
Bud & Prairie boasts a team of highly-qualified lawyers, licensed patent and trademark agents, engineers, paralegals, technical staff and legal professionals whose knowledge, experience, and acumen are second to none. Most of our attorneys and consultants own advanced degrees from both domestic and foreign institutions. We have the depth of experience of our partners with a perfect combination of knowledge, foresight and creativity, making us possible to analyse and solve issues faced by clients from various industries and providing them with all-round or holistic solutions that are not only legally sound, but also commercially sensitive.
Contact us today to see how we can support your growth.
Explore our expansion solutions in China
Advantages to Power
Our Borderless Teams
Expert & Experienced Team
Cost-Effective & Friendly Solutions
State-of-the-Art Technologies
Client-Oriented Approach
Network of 280+ Lawyers
Responsiveness & Flexibility