Illustration: Liu Rui/GT

World Intellectual Property Day fell on Sunday, but for China, it was more than an annual event. The nation is undergoing an important shift, moving from being a major importer to an important creator of intellectual properties. The change reflects the country's growing technological strength and offers new perspectives on the manufacturing sector and expanding international market presence.

Intellectual property and technological innovation are closely intertwined. According to a report run by the People's Daily on Sunday, as of the end of March, China had registered 5.53 million valid invention patents, maintaining its position as the world's leading filer of patents for consecutive years. In 2025, the number of high-value invention patents in China reached 2.29 million, with more than 70 percent of them stemming from strategic emerging industries.

The growth in invention patents has played a role in the continued evolution of China's manufacturing sector, which can be seen across several dimensions. 

First, the increase in patents has provided concrete technological support to the manufacturing industry. As the volume of patents rises, the technological capacity of Chinese manufactured products rises too, positioning the sector to engage more actively in global innovation.

Second, as the technological sophistication of Chinese products advances, so does the breadth of Chinese companies' global market expansion. No longer limited to exporting goods, Chinese companies are increasingly embedding themselves in the local supply chains, bringing investment and services such as consulting, after-sales support, and other integrated solutions. The shift signals a deeper engagement with local markets, where Chinese companies are not only contributing capital, but also creating local jobs and stimulating economic growth.

Third, the continued inflow of foreign capital into China's high-tech sectors, including the establishment of research and development centers, indicates that foreign companies are increasingly engaging with and benefiting from China's innovation ecosystem. The presence of global companies in China's R&D landscape highlights the active involvement of foreign investors, driven by their growing demand for Chinese technology.

Together, the developments form part of the ongoing evolution of global supply chains, with innovations serving as the primary driving force. The transition offers substantial benefits to the broader international industrial ecosystem. One driver of this process is technological progress, in contrast to the Western claims that mistakenly focus on the so-called overcapacity. In reality, it is China's technological advancements - not capacity growth - that are propelling the internationalization of its manufacturing sector.

The pace of technological advancement worldwide is accelerating, and simple capacity replication no longer provides a competitive advantage now. Chinese companies are keenly aware of this change. Within China, a competitive market environment has been developed, with intense competition across industries. To succeed, the companies must prioritize innovation and secure patents. 

This competitive pressure, combined with the push for technological progress, has been a driving force behind the growth and internationalization of China's manufacturing sector.

As a major participant in global supply chains, China's growth in invention patents plays a constructive role in the international economy. The increasing internationalization of Chinese manufacturing brings both investment and new momentum to global industrial networks. This shift generates benefits for local economies, with job creation and increased economic activity providing clear advantages for the communities. In this context, protecting the intellectual property and legal rights of Chinese companies is equally important.

Despite some foreign media outlets continuing to frame Chinese manufacturing in their lens of overcapacity, such narratives are increasingly at odds with the reality of China's technological advancements. Rather than simply expanding production, Chinese enterprises are focused on continuous innovation, leveraging technological progress to foster mutually beneficial cooperation with global supply chains.

According to the People's Daily, currently, China holds 61 percent of global artificial intelligence patents and two-thirds of patents related to robotics. In many emerging technologies, China is making significant progress. Investments in these sectors present opportunities for the global economy, particularly for the developing countries where technological progress can drive sustainable growth.

A clearer view of China's expanding patent base, its impact on industrial efficiency, and the resulting opportunities for global cooperation is essential to accurately evaluating its role in international supply chains. Focusing on these developments is set to offer a more balanced perspective on China's engagement with the global economy.