Introduction
As global trade tensions continue to rise between the U.S. and China, one trend stands out: Chinese companies are increasingly winning U.S. patents.
Despite an ongoing economic decoupling and a trade war that has dominated headlines for years, China’s presence in the U.S. patent system has surged.
In fact, Chinese companies secured nearly 9% of all U.S. patents in 2024, a significant leap from less than 1% in 2010.
This growth, highlighted by a 32% increase in the number of patents awarded to Chinese firms in 2024 compared to 2023, has positioned China as the second-largest source of U.S. patents, right behind Japan.
While the economic and geopolitical landscape is complex, the trend of more Chinese companies securing U.S. patents is hard to ignore.
Here’s why this shift is happening, how it’s reshaping global innovation, and what it means for the future.
Key Takeaways:
Chinese companies secured 28,258 U.S. patents in 2024, a 32% increase from the previous year.
The rise in patent filings is driven by increased investment in R&D, particularly in tech sectors like 5G, AI, and electric vehicles.
Patents offer Chinese firms a way to protect innovations and gain global recognition.
China’s “Made in China 2025” initiative supports high-tech innovation, boosting patent filings in critical sectors.
Leading companies like Huawei, BYD, DJI, and Tencent are among the top Chinese patent filers in the U.S.
https://medium.com/p/ec4062422c4d
Background: The U.S.-China Trade Tensions and Patent Landscape
Over the past few years, the U.S.-China relationship has become more contentious, particularly in trade. The U.S. has accused China of unfair trade practices, intellectual property theft, and espionage.
In response, both countries have levied tariffs on each other’s goods, creating a deep divide in global economic relations.
Despite these tensions, Chinese companies have been making strides in global intellectual property (IP) systems, particularly in the U.S. patent arena.
According to a report from IFI Claims Patent Services, Chinese firms filed 28,258 U.S. patents in 2024, marking a 32% increase over the previous year.
This surge in patent filings is significant, given the long-standing dominance of U.S. and Japanese companies in the patent race.
5 Key Reasons Chinese Companies Are Winning More U.S. Patents
1. Increased Investment in Research and Development (R&D)
In recent years, China has ramped up its investment in research and development. According to the World Bank, China’s R&D spending as a percentage of GDP has surpassed that of the U.S. in some years.
The Chinese government has made substantial investments in tech innovation, particularly in areas like AI, telecommunications, and electric vehicles.
For instance, companies like Huawei and Tencent have invested billions in R&D to develop cutting-edge technologies.
Huawei, despite facing pressure from the U.S. government, has become one of the top filers of patents in the telecommunications sector, especially in 5G technology.
This focus on innovation has led to an increase in patent filings in global markets, including the U.S.
2. Legal and Strategic Moves to Protect Innovation
As Chinese companies continue to develop new technologies, they have become more strategic about protecting their innovations.
The U.S. patent system is one of the most robust in the world, and securing patents in the U.S. offers companies significant protection and the ability to monetize their intellectual property.
Companies like BYD (a major electric vehicle maker) and ZTE (a telecommunications giant) have made moves to patent technologies in the U.S. to safeguard their innovations against potential litigation and to bolster their competitive position in international markets.
Patents also provide leverage in cross-border negotiations and can be used as a tool for partnerships or joint ventures.
For example, Chinese smartphone maker Xiaomi has filed patents in the U.S. related to its unique mobile technologies to stay ahead of competitors and mitigate the risk of patent disputes with other tech giants.
3. The U.S. Patent System as a Gateway to Global Markets
The U.S. patent system has long been considered a gateway to accessing global markets.
Securing a patent in the U.S. often provides companies with international recognition and opens doors to partnerships with major U.S. firms.
For Chinese companies, this is an essential part of their strategy to expand globally.
A notable example is DJI, the world leader in civilian drones. While the U.S. government has restricted sales of certain Chinese-made technologies due to security concerns, DJI has continued to file patents in the U.S. to maintain its competitive edge.
By doing so, DJI can continue to expand its presence and influence in the drone market, despite ongoing tensions between the two countries.
https://medium.com/p/0c9e83d348e0
4. The Role of China’s “Made in China 2025” Initiative
China’s “Made in China 2025” initiative aims to transform the country into a global leader in high-tech manufacturing and innovation.
Under this initiative, the Chinese government is encouraging companies to develop and patent new technologies in sectors like robotics, artificial intelligence, and clean energy.
This ambitious policy has spurred Chinese companies to innovate and file patents in critical fields.
For example, CRRC Corporation, a Chinese state-owned manufacturer of rolling stock, has been granted several U.S. patents for its innovative train technologies.
This aligns with China’s broader goal of becoming a global leader in infrastructure and transportation.
5. Growing Domestic Innovation Ecosystem and Talent Pool
China has rapidly developed a thriving innovation ecosystem, fueled by its growing pool of tech talent and well-funded startups. The rise of China’s Silicon Valley, centered around cities like Beijing and Shenzhen, has produced many tech entrepreneurs and innovators who are now filing patents at an unprecedented rate.
The success of companies like Alibaba and ByteDance (the parent company of TikTok) highlights the country’s evolving ability to create cutting-edge technologies that can compete on a global scale.
ByteDance, for example, holds several patents related to artificial intelligence and machine learning, which it uses to improve the user experience on its social media platforms.
https://medium.com/p/907ebd13cede
Real-Life Examples: Leading Chinese Patentees in the U.S.
Huawei: Despite facing U.S. sanctions, Huawei has filed thousands of patents in the U.S., particularly related to 5G technology. It ranks as one of the largest filers of U.S. patents in the telecommunications sector.
BYD: The electric vehicle maker has filed patents for its battery technologies and electric vehicles. BYD’s move to secure U.S. patents reflects China’s broader push to dominate the global electric vehicle market.
DJI: The leader in drone technology, DJI has filed patents for its advanced drone designs and camera systems. Despite the ongoing political challenges, DJI’s patent filings continue to grow.
Tencent: The tech giant has been filing patents in areas ranging from gaming technology to artificial intelligence. Its investments in R&D have positioned it as a top patent filer globally.
The Growing Significance of Chinese Patents in the U.S. and Beyond
China’s rising share of U.S. patents is not just a symbol of growing technological prowess but also a sign of the shifting power dynamics in global innovation.
As Chinese companies continue to secure patents in the U.S., they’re building a foundation for future technological dominance.
This will likely have significant implications for industries such as telecommunications, AI, electric vehicles, and consumer electronics.
Conclusion
In conclusion, Chinese companies are increasingly leveraging the U.S. patent system to protect their innovations, expand globally, and compete with American and Japanese firms.
With continued investment in R&D, strategic legal maneuvers, and a government-backed push for technological leadership, China is positioning itself to play a major role in the future of global innovation.
