September 12, 2018

PTL Group Partners Exchanging Opinions with HFL & Procon Pacific LLC about the China-US Trade War’s Impact on Supply Chain Shift in Asia and China IPR Development

Servcorp Kerry Center, Shanghai, China

On Aug. 31, 2018, HongFangLaw jointly organized an event with PTL Group & Procon Pacific LLC, focusing on the impact caused by China-USA trade war to the supply chain shift in Asia, and also the recent developments of IP Law protection in China, along with the increasing level of domestic market and industry sectors.

The event welcomed several professionals coming from different business sectors in exploring the on-going changes that are affecting the Chinese market in the last years. In details, we tried to focus on the latest changes mandated by the US government that started the so-called “Tariff War” with China, basically affecting a good number of businesses and industry sectors both in China and in the whole south-east Asia markets.

The China-US tariff war has already singled out the manufacturing, ICT and energy industries as the most affected by it. As companies are starting to invest in this shift into the South East Asia market, many have taken the decision to move their industrial efforts from China to other countries, mainly Vietnam, Thailand, and India.

This naturally affects the landscape of the labor cost and labor displacement, as our colleagues in Procon Pacific LLC stated during the event, and accelerated the shift that was already in action from the massive Chinese market, into the newly developed South East Asia one (and its countries). Such countries have still some challenges, including the demand for high-speed production and international logistics services and the control of labor cost.

At the same time, customs and IPR protection in these countries are still in the early stages, if compared to the international standards. With this opportunity at hand, HFL decided to highlight the recent developments of the IPR system in China, to explain how it provides a better protection for our goods and services and a safeguard for the future of the production of goods in China.

Karen Hao took the stand and highlighted how in recent years companies that produce in China through OEMs and corporations that just export to the country have seen a swift change in how the authorities and the customs deal with their cases, which is now more severe in line with the international standards. More protection brings out fewer chances for trademark squatters and patents infringements and a better environment for international and Chinese companies alike.

At the end of the event, we all came to the conclusion that the overall quality of the Chinese market and industry landscape is increasing, which brings China even more to the forefront of the goods production, but also, prices for production and overall cost have increased, as the quality of life in those production areas has risen at the same time. We will see an upsurge in the shift, during the next years, of the production of some goods and materials, from China to other countries in South East Asia.

In conclusion, we would like to thank once again our partners at PTL Group and Procon Pacific LLC for their insights in this new everchanging landscape, and we have achieved a better understanding of the international market together.

If you would like to know more about the event and receive additional insights on the IPR system in China, please get in touch with our team.

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