CHINA Law and Practice Contributed by: James Hu, Yingjie Kang, Huihui Li, Sherry Xu, Bivio Yu and Lisa Zhao, Fangda Partners
2023, generally stipulate that foreign investment in the AIGC sector must comply with laws and regulations related to foreign investment. Meanwhile, the PRC Ministry of Commerce updated the Catalogue for the Negative List on Foreign Invest - ment Access on 1 November 2024. The updated Cat - alogue reduces the number of restrictive measures from 31 to 29, with all restrictions in the manufacturing sector completely removed. This marks a significant step toward high-level opening up and demonstrates China’s commitment to further liberalising market access for foreign investors. 11.2 Intellectual Property Protections In 2024, China continued with its development of knowledge innovation overall. Compared with 2023, granted invention patents in China increased by 13.5% in 2024, and those of foreign applicants increased by 3.4%. The overall active number of registered trade marks increased by 8.1%, and the active approved registrations of foreign trade marks increased by 2.7%. In 2024, the total number of patent assignment and licensing recordals nationwide reached 613,000, representing a year-on-year increase of 29.9%. In the past year, several amendments to regulations related to intellectual property (IP) were promulgated, demonstrating China’s overall legislative inclination towards stronger protection. In the realm of patents, the CNIPA in 2025 released draft Patent Examination Guidelines that address issues such as “dual filing” of invention and utility model applications, excep - tions to novelty for public interest disclosures, and interlocutory review in re-examination. With regard to trade marks, on 7 July 2025, the Trade Mark Office of National Intellectual Property Administration released the Measures for the Expedited Review of Trade Mark Registration Applications, further enhancing the facili - tation of trade mark registration and strengthening the protection of intellectual property rights. In terms of anti-unfair competition, the National People’s Con - gress Standing Committee adopted a new amend - ment to the Anti-Unfair Competition Law on 27 June 2025, which came into effect on 15 October 2025, specifying certain types of unfair competition prac - tices in the digital economy and providing for extra - territorial jurisdiction over acts harming the domestic
market. This move reflects the Chinese government’s commitment to establish a healthier business environ - ment. In judicial practices, influential cases of IP infringe - ment or unfair competition can be seen from time to time with substantially large amounts of damages granted by the PRC courts. For instance, in a recent case concerning AI-generated images, Chinese courts recognised that the creative process involving artificial intelligence – reflecting elements of conception, artis - tic techniques and aesthetic judgment – could qualify as a “work” protected under copyright law. In the area of trade secrets, the Supreme People’s Procurator - ate reported in 2025 on the Zunpai–Huawei HiSilicon semiconductor trade secret case, which became a landmark decision for the protection of chip-related technical trade secrets, underscoring China’s judicial determination to safeguard enterprises’ confidential technologies. In the field of AIGC, China has demonstrated openness in its legislative and judicial practices. For instance, on 10 October 2025, China issued the Guidelines on Intellectual Property Protection for Generative Artifi - cial Intelligence, which provide comprehensive guid - ance for enterprises on protecting generative AI from the perspectives of copyright, trade marks, patents and trade secrets. The Guidelines aim to promote the healthy development of the generative AI industry and to encourage the practical application of generative AI technologies. This reflects China’s intent to foster the development of the generative AI sector. In judicial practice, Chinese courts have further clari - fied the platform liability of generative AI service pro - viders. When a service provider offers generative AI technology services, whether such conduct consti - tutes contributory infringement should be assessed comprehensively, taking into account factors such as the provider’s profit model, the fame and influence of the right-holder’s work, the apparent nature of the infringing act, the technological maturity of AI, the feasibility and cost of alternative designs to prevent harm, the necessity and effectiveness of preventive measures, and the potential impact of liability on the industry. It can therefore be seen that China maintains a cautiously open stance towards generative AI, seek -
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