Highlights

• China granted a record 972,000 invention patents in 2025, with 43.1% classified as high-value, signaling a strategic shift from quantity to quality in IP development across AI, electric vehicles, and green energy sectors.
• Patent commercialization is accelerating: 54% of corporate invention patents are now industrialized, licensing rose 13.7% year-over-year, and IP exports jumped 23.1% as China pushes higher-value services trade.
• China is eliminating government subsidies for patent filings to curb low-quality applications and has established 99 overseas IP dispute platforms, helping companies avoid an estimated $380M in losses in 2025.

---

China granted 972,000 invention patents in 2025, a record level that Chinese officials say reflects a decisive shift away from quantity toward higher-quality, commercially relevant intellectual property. Rare Earth Exchanges™ has warned the West that China’s accelerating its rare earth element-related downstream patents across myriad sectors from electronic vehicles and humanoids to green energy, materials science and defense. According to data released at a State Council press briefing and published by People’s Daily, China now holds 5.32 million active domestic invention patents, with artificial intelligence–related patents ranking among the highest globally.

The announcement, citing the China National Intellectual Property Administration (opens in a new tab), highlights rapid growth in patents tied to AI, computer technologies, medical technologies, and information-management systems—areas that overlap directly with sectors where the U.S. and Europe are competing for technological leadership. Officials emphasized that 43.1% of China’s active invention patents now qualify as “high-value”, a metric that includes technical complexity, market relevance, and legal stability. This share has risen steadily and now totals 2.29 million high-value patents.

Innovation remains geographically concentrated. Where? The Yangtze River Delta, Beijing–Tianjin–Hebei corridor, and Guangdong province together account for roughly two-thirds of China’s active invention patents, underscoring how regional industrial clusters continue to drive China’s technology output.

Key Innovation Zones in China

Region	Core Cities/Nodes	Key Industries & Tech Sectors
Yangtze River Delta	Shanghai, Suzhou, Hangzhou, Nanjing, Ningbo	Semiconductors & IC design; artificial intelligence; industrial software; advanced manufacturing; robotics; electric vehicles (EVs); lithium-ion batteries; biopharma; photonics; smart equipment
Beijing–Tianjin–Hebei Corridor	Beijing, Tianjin, Shijiazhuang	Artificial intelligence & foundational algorithms; aerospace & defense technologies; quantum computing; telecom & 5G/6G standards; cybersecurity; advanced materials; medical devices; national research institutes
Guangdong Province	Shenzhen, Guangzhou, Dongguan, Foshan	Consumer electronics; AI hardware; telecommunications equipment; EVs; batteries; power electronics; drones; robotics; smart manufacturing; export-oriented technology platforms

From a commercialization standpoint, Chinese officials reported meaningful gains. Patent licensing and transfers rose 13.7% year-over-year, while the industrialization rate of corporate invention patents reached 54%, a key metric signaling whether patents are actually being used in products and services. Intellectual-property royalty trade also expanded, with IP exports up 23.1%, supporting China’s push to grow higher-value services trade alongside manufacturing.

Some Trends

One notable policy shift may resonate with foreign observers: Chinese regulators say they will fully eliminate government subsidies tied to patent filing or approval, aiming to curb low-quality, subsidy-driven patent inflation. Universities and research institutes are being required to adopt pre-filing evaluation systems to block weak patent applications before submission—an implicit acknowledgment of long-standing Western criticism that China’s patent totals overstated real innovation.

China is also strengthening its overseas IP defense infrastructure. Authorities report 99 foreign IP dispute-response platforms and sector-specific mechanisms for industries such as automotive and solar, claiming that these efforts helped companies avoid or recover an estimated ¥2.75 billion ($380M) in losses in 2025 from overseas IP disputes and trademark squatting.

Why this matters for the U.S. and the West

The data suggests China is moving beyond headline patent counts toward systematic commercialization and legal defensibility, particularly in AI and advanced technologies. If sustained, this trend could narrow the innovation-quality gap with Western firms, complicate technology-transfer controls, and intensify competition in global IP-driven markets—from AI software to clean energy and medical tech.

Disclaimer: This news item originates from Chinese state-affiliated media, including People’s Daily, and cites data released by government authorities. The information should be independently verified through non-Chinese or third-party sources before being relied upon for investment, policy, or strategic decision-making.