So, it is indeed an improvement. Most countries, if not all of them, have this “security clearance procedure”. Of course, China being….China, we have to be cautious (but not paranoid): we’ll see what the “implementing measures” will state (when published…) to understand a bit better how it is done in theory, and a few months more to know how it is really done!

By the way, not interested by a relocation to mysterious Changshu ?

In the final version passed by the NPC, that provision was modified, removing the absolute requirement for a China-first filing. However, it is my understanding that a security clearance (handled by the SIPO, China’s Patent Office) will be put into place instead for companies wishing to file for foreign patent protection first. I’m assuming that foreign-invested enterprises are treated as domestic entities, as they are in most areas of Chinese law.

The real question of course is to what extent the government may interfere via this SIPO security clearance procedure. Will it just be a formality? How long will it take? In other words, will this have an adverse effect on foreign-invested R&D facilities in China?

Since China is loving all this investment in R&D for a variety of reasons, I doubt that much interference would be forthcoming. However, it is still a slight worry.