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China is facing growing intellectual property risks as China is quickening its overseas expansion, experts said on a forum on Friday.

During the China Enterprises Going Global Risk Conference Ding Liang, a partner at De Heng Law Offices, said one of the main risks faced by enterprises investing in overseas markets in recent years was pre-emptive trademark registration.

For example, White Rabbit candy, a popular brand in China since 1959, has experienced pre-emptive trademark registration in Japan, Philippines, Indonesia, the United States and the United Kingdom. To tackle this nerve-wracking situation, Guan Sheng Yuan (Group) Co Ltd, the manufacturer of White Rabbit , could register similar trademarks in advance, such as Grey, Black or Black-White Rabbit.

For Chinese enterprises to invest in overseas markets, Ding Liang said, companies should be on the alert for intellectual risks, prepare response plans and make full use of third-party service centers or platforms to avoid risks earlier.

Although such platforms are not yet mature in China, Jiang Tai Insurance Brokers Co Ltd has noticed the necessity of building up mediated platforms to help Chinese enterprises expand overseas, including Utou and Dajiuxing.

According to Shen Kaitao, chairman of Jiangtai International Association, a one-stop solution to risks and problems Chinese enterprises are likely to encounter is necessary. The Utou platform, established in 2016, is a cross-border e-commerce commercial platform with 6,319 corporate members, 583 overseas industrial parks and 103 embassies to help "going global" enterprises leverage their resources.

Shen said at the conference, "At the beginning of last year, only a single-digit number of business opportunities were published by the embassy in China, but now, thanks to the move-in of 103 embassies, there are more than 200 ongoing projects on Utou."

As an embassy representative counselor Paul Chikawa, from the Embassy of the Republic of Zimbabwe in China, told China Daily "Some telecom giants such as Huawei and ZTE have entered our country, but basically we need Chinese companies in all areas."

Although Zimbabwe is still fighting for domestic financial independence, with rich mineral resources and scenic wonders like Victoria Falls, the country now would like to "Look East, Look China" and utilize preferential investment policies to attract more Chinese investors.

Where overseas industrial parks are concerned, Wei Jianqing, executive general manager of China-Africa TEDA, told China Daily attracting investment is rather significant for them. "When inviting investment, it's very hard for us to find a good match," he said. "Utou is like a dating website, which has introduced us to a large number of enterprises, bringing many investors to investigate the China-Egypt TEDA Suez Economic and Trade Cooperation Zone. Currently, there are five companies already at the launch stage."

Growing along with "One Belt, One Road" initiatives, the annual Chinese Enterprises Going Global Risk Conference started in 2015. Its goal is to improve Chinese enterprises' capability to recognize risk, solve disputes and use platforms to create more opportunities for Chinese enterprises to invest globally, Shen said.

 

Email: wenqiao@nbd.com.cn

Editor: Wen Qiao