China has issued a guideline tightly reviewing the transfer of intellectual property rights to overseas buyers.
IPR transfers will be reviewed if they involve patent rights, exclusive rights to layout designs of integrated semiconductors, software copyrights, or rights to new plant varieties.
"The government will only review two categories of IP transfers: technology restricted for exports and international acquisitions of Chinese enterprises," said Zhang Zhicheng, director of the Protection and Coordination Department at the State Intellectual Property Office of China (SIPO).
The acts of transfers include change of right holders, change of actual controllers of IPRs and exclusive licenses of IPRs. Moreover, the transfers will be reviewed if they appear to affect national security or the country's core technology in key fields.
In 2017, China's intellectual property royalties earned abroad surpassed 4 billion US dollars, according to SIPO.
"Besides the financial influences, improper review of core IP transfers could restrain China's self-developed innovation abilities and competitive advantages internationally," Zhang said.
He noted that the developed economies like the United States, EU, and Japan have similar review systems.