Biden’s approach to China IP has been multilateral but the plan is perceived as a shift to unilateralism – that causes war.

All that said, it would be inaccurate to describe Chinese IP law as thoroughly protective for either domestic or foreign innovators. Along with the aforementioned trademark and patent subsidies, considerable controversy stems from "forced technology transfer" policies. According to the University of Oxford's Business Law Blog, foreign companies looking to do business in China must turn over their technology to local firms or be denied the right to operate within China. This effectively means turning over the blueprints (literal or otherwise) to such technology — which is all but equivalent to surrendering the IP. It creates considerable opportunities for infringement, fraud and corruption. Also, in disputes with foreign firms, some local IP courts still markedly favor domestic organizations.

Chinese government representatives often resent such accusations of bias or corruption. In their view, the deals represent friendly agreements between businesses, and courts' decisions are not politically motivated. While Oxford noted that FTT guidelines are not as pervasive now as they were a few years ago, they have yet to disappear altogether.

Despite the ongoing COVID-19 pandemic, IP rights and their preservation will inevitably factor into negotiations between the U.S. and China.

The Biden approach: Not dissimilar, but multilateral

If the new U.S. Secretary of the Treasury, Janet Yellen, is to be believed, the Biden administration will not tolerate any signs of lapses in China's IP protections.

"We need to take on China's abusive, unfair and illegal practices," Yellen said to the Senate Finance Committee at her confirmation hearings. As reported by Bloomberg, she added, "[China has] been stealing intellectual property and engaging practices that give it an unfair technological advantage, including forced technology transfers. And these … are practices that we're prepared to use the full array of tools to address."

Biden had expressed similar sentiments during a December interview with The New York Times. However, he also said that they would work with ally nations to "develop a coherent strategy" for addressing cases of IP infringement and other issues — a stance Yellen echoed before the Senate — instead of taking China on in a unilateral and bellicose manner. This more nuanced approach could yield greater cooperation from Beijing and help repair U.S.-China trade relations, but we will likely not know one way or the other for some time.

As we saw with the trade war, conflicts between the U.S. and China can quickly escalate and have ripple effects throughout the world. It would thus be wise for all organizations doing business in China to keep themselves abreast of the country's evolving IP regulations and work with a reliable IP services provider to help establish strong protection for their intangible assets.