Trademark Squatting in China: Preventing a Great Wall of Laments

China remains one of the world’s most important markets for manufacturing, exports and consumer sales. For trademark owners, however, entering the country without a protection strategy can still create serious problems.

Over the years, we have seen companies discover too late that a third party had already applied for or registered their trademark in China. In some cases, the problem appeared only after products were already being manufactured or shipped.

That is where the “Great Wall of Laments” comes in: preventing a trademark problem is usually far easier than trying to recover a brand after someone else has secured rights first.

For businesses planning to sell, manufacture or expand in China, early trademark protection can be an important part of the market-entry strategy. See how trademark registration in China works and what the process involves.

What Is Trademark Squatting in China?

Trademark squatting in China generally refers to a third party filing or registering a trademark associated with another business, often before the legitimate brand owner has secured its own rights in China.

The problem has historically been particularly significant for foreign companies because China operates largely on a first-to-file basis. Registering or using a brand successfully in the United States, Europe or another market does not automatically give its owner trademark rights in China.

A squatter may register the original brand name, a similar version or its Chinese translation or transliteration. The registration may then be used to block the legitimate business, create leverage in a commercial relationship or demand payment for transferring the mark.

Why Is Trademark Squatting a Particular Risk in China?

Trademark rights are territorial. A registration in another country does not automatically extend to mainland China.

China’s first-to-file system also means that filing early can be extremely important. Earlier use abroad may not, by itself, be enough to secure registration if another party files first.

At the same time, China has developed increasingly strong mechanisms to address bad-faith trademark applications. The law and examination rules can take factors such as prior relationships, malicious intent, hoarding and improper filings into account.

This means that a squatter does not necessarily have an unbeatable position. However, proving bad faith and challenging an application or registration can take considerably more time, evidence and expense than filing proactively.

Is China Cracking Down on Trademark Squatting?

Yes. China completed a major revision of its Trademark Law on June 26, 2026, and the revised law will take effect on January 1, 2027.

The reform specifically targets problems including malicious trademark applications, trademark hoarding and squatting. It strengthens restrictions on applications filed without genuine intent to use where they clearly exceed normal business needs, and it introduces stronger consequences for certain malicious filing practices.

The China National Intellectual Property Administration (CNIPA) has described trademark squatting and hoarding as part of the bad-faith registration practices the revised framework is intended to address.

Read CNIPA’s overview of the revised Trademark Law

The reform gives legitimate brand owners stronger tools, but it does not eliminate the advantage of registering early. Challenging a bad-faith filing can still require opposition, invalidation proceedings, evidence and legal costs that might have been avoided through preventive filing.

Can Trademark Squatting Affect You If You Only Manufacture in China?

Absolutely.

One of the most common misconceptions is that a company only needs trademark protection in countries where it sells its products. Manufacturing can create its own risks.

iGERENT has handled situations in which companies discovered a trademark problem only after their goods were already being manufactured in China. In some cases, the person who had registered the mark was connected with the factory or company manufacturing the client’s products.

A trademark registration may also create problems at customs or during export if another party controls the relevant rights in China.

For a business that has already invested in manufacturing, packaging and distribution, discovering the issue at that stage can leave very few quick solutions.

If China forms part of your supply chain, it is therefore worth considering trademark protection before manufacturing begins, not only before sales start.

What Can You Do If Someone Has Squatted Your Trademark in China?

If another party has filed or registered your trademark in China, the available options depend on the status of the mark, the evidence available and the relationship between the parties.

Possible steps may include:

• Opposing a pending application before registration, where the applicable procedure allows it.
• Seeking invalidation of an existing registration based on bad faith, earlier rights or other available grounds.
• Collecting evidence of a prior relationship, such as dealings with distributors, manufacturers, agents or business partners.
• Using evidence of reputation or earlier rights where relevant under Chinese law.
• Negotiating a transfer or settlement where this is commercially appropriate.
• Reviewing alternative filing strategies for related marks, Chinese-language versions or relevant subclasses.

Do not assume that paying the registrant is automatically the only solution. The strength of a challenge should be assessed first.

China’s current examination guidance also distinguishes between different forms of bad-faith filing, including large-scale hoarding and squatting aimed at taking advantage of another party’s reputation or rights.

See CNIPA’s guidance on bad-faith trademark applications

7 Ways to Reduce the Risk of Trademark Squatting in China

1. File Before Entering or Announcing the Market

Where possible, secure protection before launches, trade fairs, distributor negotiations or major publicity make the brand more visible.

2. Consider China Even If You Only Manufacture There

If products are produced, assembled or exported from China, trademark protection may still be commercially important even if China is not a sales market.

3. Search for Earlier Trademarks

Before filing, check for identical and similar marks that could create obstacles. Search strategies should consider not only spelling, but also pronunciation and related goods or services.

4. Review China’s Subclass System Carefully

China uses the Nice Classification, but each class is further divided into subclasses that can materially affect the scope of protection.

5. Consider Protecting a Chinese-Language Version

If Chinese consumers or business partners are likely to use a translated, transliterated or phonetic version of your brand, consider whether that version should also be protected.

6. Monitor New Trademark Applications

Ongoing monitoring can help identify third-party applications early, when opposition or other preventive action may still be available.

7. Review Hong Kong and Macau Separately

Trademark protection in mainland China does not automatically extend to Hong Kong or Macau. Separate filings may be necessary where those markets matter to your business.

China’s Subclass System Can Leave Gaps in Protection

China follows the Nice Classification system, but it also subdivides many classes into subclasses.

This can produce an outcome that surprises foreign applicants: two identical or highly similar trademarks may sometimes coexist within the same Nice class if they cover goods placed in different subclasses and are not considered similar under local practice.

For example, products that all fall within Nice Class 25 may be separated into different Chinese subclasses.

That means choosing the right class number alone may not be enough. The specification should be reviewed carefully to identify the subclasses that correspond to the company’s actual and commercially relevant goods or services.

The objective should not simply be to register in as many subclasses as possible, but to ensure that the filing strategy reflects the business and avoids unnecessary gaps in protection.

Should You Register a Chinese Version of Your Trademark?

For many brands, yes.

A foreign-language trademark may be difficult for Chinese consumers to pronounce or remember. As a result, consumers, distributors or the media may naturally begin using a Chinese version of the name.

If the brand owner does not select and protect that version, a third party may do so first.

A Chinese trademark can be developed through:

• translation, preserving the meaning of the original mark;
• transliteration, approximating its sound;
• phonetic adaptation, prioritizing pronunciation and branding; or
• a combination of sound, meaning and brand positioning.

This is not purely a legal exercise. The chosen characters may carry meanings or associations that affect how the brand is perceived.

For that reason, the Chinese-language version should ideally be developed with input from native speakers and marketing specialists, then reviewed from a trademark perspective before filing.

Does a China Trademark Cover Hong Kong or Macau?

No.

A trademark registration in mainland China does not automatically provide protection in Hong Kong or Macau. Each has its own trademark registration system.

If either territory is commercially important, separate protection should be considered.

The same territorial principle applies when planning protection elsewhere in the region: trademark rights should be assessed jurisdiction by jurisdiction rather than assuming that a mainland China registration covers neighboring markets.

Expert Tip: File Before Trademark Squatting Becomes Your Problem

China’s tougher approach to bad-faith filings is welcome, but prevention remains the simpler strategy.

If China is relevant to your sales, manufacturing or future expansion, review your trademark position early. A filing strategy that covers the right mark, subclasses and language versions can be far less expensive than trying to recover rights after another party has filed first.

Frequently Asked Questions About Trademark Squatting in China

What is trademark squatting in China?

Trademark squatting generally occurs when a third party files or registers a brand associated with another business, often before the legitimate owner has secured trademark protection in China.

Why is trademark squatting a problem in China?

China operates largely on a first-to-file basis, and trademark rights obtained in other countries do not automatically extend there. This can create opportunities for third parties to file before foreign brand owners.

Is trademark squatting illegal in China?

Bad-faith trademark filings can be refused, opposed or invalidated under Chinese trademark law depending on the circumstances. China has also strengthened its rules against malicious applications, hoarding and squatting, including through the revised Trademark Law adopted in 2026.

See CNIPA’s summary of the 2026 Trademark Law revision

What can I do if someone registered my trademark in China?

Depending on the circumstances, you may be able to oppose the application, seek invalidation, rely on earlier rights or evidence of bad faith, negotiate a transfer or pursue another filing strategy. The best route depends on whether the third-party mark is still pending or already registered.

Should I register my trademark in China if I only manufacture there?

It may be advisable. Manufacturing in China can expose a business to risks even where products are sold elsewhere, particularly if another party registers the brand and attempts to use those rights against the legitimate business.

Can I challenge a bad-faith trademark registration in China?

Potentially, yes. Chinese law provides mechanisms for challenging certain bad-faith applications and registrations. Evidence of prior relationships, reputation, earlier rights, hoarding or other improper conduct may be relevant depending on the case.

Should I register the Chinese version of my trademark?

If a Chinese translation, transliteration or phonetic version is likely to be used in the market, protecting it can help the brand owner maintain control over how the brand is identified locally.

Does a mainland China trademark cover Hong Kong and Macau?

No. Hong Kong and Macau operate separate trademark systems, so protection generally requires separate filings.

Protect Your Trademark in China Before Problems Arise

If China matters to your business — whether for sales, manufacturing or future expansion — securing the right trademark protection early can help reduce the risk of squatting and costly disputes.

iGERENT can help you search, file and manage your trademark registration in China, including the relevant classes and subclasses and, where appropriate, Chinese-language versions of your brand.

Not sure what protection you need? Contact us for a free, no-obligation initial consultation and we’ll help you understand the next steps.