Deep & Far Newsletter 2024 ©
Jan (2)

The Greater China IP Updates V Jan 2024

By Lyndon 


China Invests US 5 Billion Dollars in Chipmaker

Government-backed investors have invested 39 billion yuan (US 5.4 billion dollars) in semiconductor start-up Changxin Xinqiao Memory Technologies Inc. in a sign that Beijing is doubling down on its efforts to achieve technological self-sufficiency.  The state-backed China Integrated Circuit Industry Investment Fund Phase 2 invested 14.6 billion yuan, and funding from two other investors affiliated with the local government in Hefei in Anhui Province also contributed. It is one of the biggest investments China’s flagship semiconductor fund, better known as the Big Fund, has made since Beijing ordered a shakeup last year.  Founded in 2021, Changxin Xinqiao shares some shareholders and its general manager with China’s leading DRAM chipmaker Changxin Memory Technologies Inc. which is also headquartered in Hefei.  Changxin Memory aims to compete with global leaders such as Micron Technology Inc. and Samsung Electronics Co. and it is planning to file for an initial public offering in China that could value the chipmaker at more than US 14.5 billion dollars.  Beijing has been intent on making breakthroughs in its semiconductor industry even as the US is trying to limit China’s access to cutting-edge chip technologies invented in the US.  China recently scored an early success when Huawei Technologies Co. released a 5G phone with silicon made by top Chinese chipmaker Semiconductor Manufacturing International Corp.  Although there are downsides to this rivalry, it is expected to stimulate research and the number of patents issued in the next decade.


China and EU to Cooperate on Geographical Indications

The China-European Union Cooperation and Development Forum on Geographical Indications (GIs) was recently held in Suzhou on the occasion of the 2nd Anniversary of the entry into force of the agreement.  So far, China and the EU have generated mutual protection for the first group of GIs with about 100 products from each side and a second group of 175 products from each side was announced as joining the list at the meeting. Various measures have been put in place by CNIPA and their European counterparts to achieve this goal, such as cracking down on GI counterfeiting and investigating trademark infringement allegations.  In China, the administration has hastened the legislation of a law dedicated to GI, established national GI protection demonstration areas, promoted development of GIs nationwide with traceable origins.  For China, one motive for this investment in time and money is that some GI products like NingXia Goji Berry are from economically underdeveloped areas, so implementation of the agreement will give a boost to rural revitalization in those areas.  With the recent publicity surrounding these developments, EU GI products like Bordeaux Wine has taken off in the Chinese market, benefitting from the protection of its legitimate rights and interests.