Doing Business in China with an Asia Strategy

Home | China Law Blog | Reformulating Your IP Strategy for Manufacturing Beyond China Table of Contents Toggle IP Strategies for the China Plus One Era I recently had a discussion with several of my law firm's international lawyers about how so many of our clients are expanding their manufacturing operations or product sourcing beyond China. These clients now have an "international" strategy in which China is just one component, or in some cases, no longer a component at all. International Manufacturing is Shifting Five years ago, our typical manufacturing client sought our law firm's assistance in either outsourcing product manufacturing to a Chinese factory or establishing their own manufacturing operations within China. For those clients aiming to establish a manufacturing presence in China we primarily assisted with forming a wholly foreign-owned enterprise (WFOE) or structuring joint ventures. For those seeking to outsource their manufacturing to China we would mostly focus on drafting essential agreements, such as as NNN Agreements, Product Development Agreements, and Manufacturing Agreements. Whether the company was entering China to manufacture its own goods or to buy product from a Chinese company, we would discuss their intellectual property requirements and assist them in filing for trademarks and/or patents. Things are different these days. Many of our manufacturing clients have been making products in China for years, and they now seek our help to add another country—usually Mexico, India, Vietnam, or Thailand, but also Taiwan, Colombia, Peru, Indonesia, Malaysia, or Cambodia—to their manufacturing mix. Five years ago, a common question was "Dongguan or Suzhou?" Today, we are more likely to hear "Hanoi or Querétaro?" Shifting International Manufacturing Requires Shifting International IP Protection Though it's not just manufacturing companies that increasingly need to protect their IP beyond China, they are the ones leaving China in great numbers. Rising costs in China, U.S. tariffs on Chinese products, and the increasing importance of geopolitics have all accelerated this trend, especially since Russia invaded Ukraine. It also is much easier for a company that outsources its product manufacturing to a factory in China to move that outsourced manufacturing to Vietnam than for a company that has 75 employees in Shanghai providing accounting services to move those 75 people to Mexico City. A number of our American manufacturing clients have told us they are working quickly to get their ex-China strategies in place before the 2024 U.S. elections due to concerns about future U.S.-China relations. Not surprisingly, European, Canadian, Australian, and Latin American clients that sell Chinese products into the United States share similar concerns. Even some of our European clients with no U.S. sales worry about the EU following the U.S. lead in decoupling from China. Developing Comprehensive International IP Strategies The China Plus One strategies of our clients mean our IP discussions must extend beyond China. Five years ago, only about 20% of our China clients needed to consider IP registrations outside China and the countries where they sold their products. Today, about half of our clients need IP protection in countries beyond China and their product markets. The critical point for companies expanding beyond China is to recognize that China-registered IP offers no protection outside China. Companies must register their IP in each country (or region) where they do business. And remember, for IP purposes, Macau, Hong Kong, and Taiwan are separate from China. Conclusion The shifting sands of global manufacturing requires a comprehensive and adaptable IP strategy. Your IP strategy needs to align with your manufacturing strategies, without either one lagging the other. Check Out Our China Law Services Share Twitter Facebook LinkedIn E-mail Comment Dan Harris Dan Harris is a founding member of Harris Sliwoski, an international law firm where he mostly represents companies doing business in emerging market countries. Most of his time is spent helping American and European companies navigate foreign countries by working with the international lawyers at his firm in setting up companies overseas (WFOEs, Subsidiaries, Rep Offices and Joint Ventures), drafting international contracts, protecting IP, and overseeing M&A transactions. In addition, Dan writes and speaks extensively on international law, with a focus on protecting foreign businesses in their overseas operations. He is also a prolific and widely-followed blogger, writing as the co-author of the award-winning China Law Blog. Harris Sliwoski Attorney Read more posts [email protected] Read More Intellectual Property (IP), International Manufacturing Related Posts September 15, 2026 Your AI-Drafted China Contract Says It Needs a Lawyer. Listen to It. September 11, 2026 Forensic Accountants in China Business Litigation: How True Numbers Can Tell the Wrong Story September 4, 2026 China NNN Agreement or Trademark Registration? You Usually Need Both September 1, 2026 AI Didn't Replace Lawyers. It Gave Us the 48-Page Contract. August 27, 2026 Do I Need a China NNN Agreement or a China Manufacturing Agreement? Usually Both. August 26, 2026 China’s New Overseas Investment Rules: Can Your Chinese Investor Actually Get the Money Out? 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