Impressions from my recent China trip

I just came back from a one-week business trip in China (Shenzhen and Shanghai) and would like to share my impressions on China's economy and IP market with our readers.

(1) Recession. What recession?

I would never have guessed that China is in recession. The stores were packed with customers and the restaurants were full of patrons, as if China's fast pace has never slowed. For the companies I visited, large or small, their oversea sales might have slowed, but China's domestic consumption keeps these companies going. I can sense that the energy is still there and these companies are still innovating (thanks to supportive Chinese government policies).

(2) Chinese IP Market

Chinese companies have stepped up their efforts to protect IP rights. It appears, however, that large Chinese companies are still not comfortable about spending reasonable (according to the US standard) attorney fees for IP matters. Because of their size and potential, these large companies still attempt to pressure US law firms to offer deep discounts in IP services. I believe that it will take at least another 5 years for the Chinese IP market to mature with respect to these large Chinese companies.

Interestingly, however, the medium or small Chinese companies are more active in defending their products against infringement allegations. Because these smaller companies rely on single or limited product lines, they are more willing to pay standard attorney fees to protect their market shares. Currently, the demand for IP services mainly comes from these smaller companies.

(3) Shanghai: A Futuristic City

I have never seen a more dynamic city than Shanghai, not NYC, not London, and certainly not Paris. Entrepreneurs from all over the world come to Shanghai to look for and seize seemly unlimited opportunities. Not only is Shanghai a financial center of Asia now, it is also becoming a center for technological innovations. Personally, after talking to several clients about their ventures, I was deeply impressed with their innovations and their energy.