New Delhi – China’s approach to intellectual property rights (IPR) is facing growing criticism over allegations that Beijing prioritizes domestic companies while failing to ensure compliance with international standards, according to a report.
An article published by Uganda’s Nile Post news website argues that China’s intellectual property strategy focuses more on strengthening domestic control than aligning with international agreements, including the World Trade Organization’s Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement and conventions administered by the World Intellectual Property Organization.
The report cited an incident at the 2026 Frankfurt Auto Parts Show, where German customs authorities reportedly seized 1,274 suspected counterfeit or patent-infringing products, primarily from Chinese exhibitors. Several exhibition booths were sealed, and fines were imposed.
Despite Beijing’s efforts to strengthen intellectual property protection, Chinese companies continue to face allegations of counterfeiting and patent infringement in overseas markets, the article said.
The report argues that China’s emphasis on domestic intellectual property enforcement, combined with alleged shortcomings in international compliance, creates an uneven competitive environment and raises concerns among foreign businesses.
It also noted that the United States and European countries are introducing stricter trade requirements covering intellectual property, carbon emissions, labor rights and environmental standards, increasing compliance pressures on Chinese exporters.
According to the article, international buyers are increasingly considering alternative suppliers in Southeast Asia and Taiwan amid concerns over regulatory transparency and corporate practices in China.
The report also highlighted allegations involving Chinese electric vehicle manufacturer BYD. Employees reportedly claimed that stainless steel components were replaced with cheaper carbon steel, quality control departments were eliminated and auditors faced pressure to falsify reports. The allegations raised concerns about product safety and corporate governance.
Another case involved Shing Yu, a publicly listed automotive lighting company, where newly recruited graduates were allegedly told to accept half their agreed salaries or resign. According to the report, affected employees appealed to European customers and European Union authorities.
The article argued that such incidents raise broader questions about corporate governance, labor protections and international confidence in Chinese businesses.
It warned that unless Beijing brings its intellectual property practices into closer alignment with international standards, its domestic-focused strategy could undermine foreign investor confidence and weaken the global competitiveness of Chinese companies. (Source: IANS)
