Q: Research China’s current policies on IP protection. Discuss the impact of the current IP policies to an MNE doing business in China.
The intellectual property rights which are currently protecting the MNE’s in China. The existing IP rights being used deliberately for the growth and development of the Global multinational enterprises. The existing rich cultural heritage of China are also protected with the help of the IP policies (Holmes et al., 2016). The global multinational enterprises have a huge impact on the economy of China. Human resources are better recruited due to the security purposes which worked effectively to reduce the IP thefts. The IP violations were going beyond the control of the Chinese government. The business processes of the MNE’s were heavily impacted due to the successful implementation of different IP protection policies.
The most major security problem of the MNE’s in China is the IP leakage which is very well tackled with the help of the intellectual property policies. The critical complexities were minimized after the application IP policies (Huang, Geng & Wang, 2017). The business models of the MNE’s can no longer be replicated by the rival organizations. Reputation and the profitability of the MNE’s was increased successfully with the help of the IP policies.
Q2: How does China rate against other countries in protecting IP of an MNE?
The intellectual properties of MNE’s in China are of very high order as it includes strict IP policies such as the Trademarks, Copyright Protection Acts, Patents and Trade secrets. The other countries of the world also sometimes follow these successful strategies. The violations of intellectual property laws are also higher in China. MNE started their operations in China also. The patent is considered in most of the countries outside China also. Protection of the patented inventions had an impact not only in China but also other parts of the world. The desired outcome of the IP policies was so good that other Corporations which work on other nations started their operations in China as well.
China is one of the major sources of IP theft in the whole world. The registration of the IPR is different in European countries. Conditional protection is important aspect of IP policies in China (Garcia et al., 2016). The business collaborations with the MNE’s of other countries were successful after the successful incorporation of the IPR laws. The complexities of the non-Chinese companies were reduced due to a huge extent.
How is the legal environment in China dealing with the protection for an MNE?
The legal environment in China includes government agencies, laws and policies, pressure groups which influence and limit various business organizations or individuals. The protection of the MNE’s is a huge aspect in China. The laws which are passed by the government of China to regulate their business activities are effectively protecting the business models and the other types of business activities. The protections come in all formats such as economic and social development as the business needs and requirements can also be analyzed, stringent regulations involving taxation is understood very well by the MNE’s (Jiao, Koo & Cui, 2015). The macro and the micro economic factors of the MNE’s in China such as the interest rates, inflation, unemployment are also maintained very professionally by the legal environments in China. Fresh opportunities in the MNE are one of the outcomes of the efficient implementation of the legal environment in China. Thus it can be said that the legal environment is dealing very well for the protection of the MNE’s in China.
Garcia, A., Jiang, J., Turley, C., & Wang, M. (2016). The evolving environment for intellectual property tax management in China. In Economic Impacts of Intellectual Property-Conditioned Government Incentives (pp. 205-233). Springer, Singapore.
Holmes Jr, R. M., Li, H., Hitt, M. A., DeGhetto, K., & Sutton, T. (2016). The Effects of Location and MNC Attributes on MNCs' Establishment of Foreign R&D Centers: Evidence from China. Long Range Planning, 49(5), 594-613.
Huang, K. G. L., Geng, X., & Wang, H. (2017). Institutional regime shift in intellectual property rights and innovation strategies of firms in China. Organization Science, 28(2), 355-377.
Jiao, H., Koo, C. K., & Cui, Y. (2015). Legal environment, government effectiveness and firms' innovation in China: examining the moderating influence of government ownership. Technological Forecasting and Social Change, 96, 15-24.