China’s Trademark Law Just Got Sharper: What Foreign Producers and Entrepreneurs Must Know in 2026

On 22 December 2025 the Standing Committee of China’s National People’s Congress finally read the long-anticipated Trademark Law Revision Draft.

the Standing Committee of China’s National People’s Congress

The 84-article bill is not a cosmetic touch-up; it is a surgical re-design of how brands are born, policed and punished on the mainland. Expected to take effect on 1 November 2026 , it will touch every foreign company that manufactures, sells or licenses in the People’s Republic. Below is a plain-English tour of the changes and a checklist you can e-mail to your China team today.

1. Bad-faith filings finally meet a working definition Old law: anyone could tick an “intention to use” box and park a mark for three years.

   
   

   Draft: if one applicant files in more than three Nice classes and cannot show “a reasonable and immediate commercial use plan”, CNIPA will refuse the application outright.

   
   

   Take-away for producers: the era of “all-class” defensive portfolios is over. Keep purchase orders, tooling contracts and warehouse receipts in one folder—CNIPA can demand them at any time. If no goods enter China within eighteen months, any third party can seek invalidation with close-to-certain success.

   
   

2. Well-known marks get an extra shield—even if unregistered Article 18 extends China’s anti-dilution rule to unregistered foreign marks. If your Italian espresso brand is famous in Milan but not yet filed in Shanghai, you can still block a Guangzhou trader from registering it on fertiliser or crypto-wallets.

   
   

   Evidence that now counts: Michelin mentions, Instagram followers, Xiaohongshu posts, WeChat Index and cross-border back-office stats showing Chinese IP searches. Build a “China fame dossier” now, have it notarised and keep it ready for oppositions.

   
   

3. Deceptive use becomes a criminal hot zone Using a registered mark “in a manner likely to mislead the public” about quality, origin or performance triggers an administrative fine of up to RMB 50 000. If the misleading act “endangers human life or property”, the case is transferred to the Public Security Bureau for criminal investigation.

   
   

   Typical trip-wire: you allow a contract manufacturer to downgrade 304 stainless steel but keep the original logo—both the plant and the brand owner are jointly liable. Any “China-only formula” must be printed on the package in bold type; otherwise market regulators can seize goods and freeze Tmall stores.

   
   

4. Agents can lose their licence for repeat bad-faith work The draft keeps the existing wording—“where the circumstances are serious” CNIPA may suspend an agency—but lawmakers told state media that “frequent rejections on bad-faith grounds will be a key factor”.

   
   

   For foreign filers this means: cut-rate “guaranteed registration” shops will disappear; Shanghai and Shenzhen fees are already rising 30–50 %. Reputable agents now ask for use evidence, sales forecasts and chain-of-title before they will even accept a POA. Update your power-of-attorney and insert a “due-diligence” clause so the agent cannot later argue you concealed intent.

   
   

5. Vexatious litigation now carries a price tag A plaintiff who “obviously lacks legal or factual basis” can be ordered to pay the defendant’s reasonable costs—counsel, notarisation, lost management time.

   
   

   The Supreme People’s Court has told Beijing, Shanghai and Shenzhen IP courts to open a “counter-cost fast lane” in 2026; average trial time is expected to be four months. When you receive a cease-and-desist letter, run a “rights-stability” search first; if the mark looks hijacked, prepare a counter-claim instead of a quiet settlement.

   
   

6. Timeline and grandfathering rules second and third readings are scheduled for March and June 2026; the law will probably enter into force on 1 November 2026. Applications filed before that date will be examined under the old rules, but any use or litigation that takes place after 1 November 2026 will be judged under the new standards. In short: old certificates are safe; new behaviour is not. You have an eleven-month free-restructuring window.

   
   

7. Foreign company 2026 action list (copy-paste ready)

   ☐ 1. Audit pending applications – withdraw classes where no China supply contract exists; change “retail services” to specific goods.

   
   

   ☐ 2. Build a use-evidence pack – time-stamped photos of Chinese-language packaging, customs declarations, warehouse receipts; notarised campaign data on Tmall/JD/Douyin or the other e-shop platforms.

   
   

   ☐ 3. Update OEM agreements – add a clause barring the contractor from registering any similar mark inside or outside China; require quarterly bills of lading proving no domestic sale.

   
   

   ☐ 4. Monitor similar filings – subscribe to CNIPA open data; set fuzzy alerts for phonetic, visual and conceptual variants; file opposition within three months of publication.

   
   

   ☐ 5. Train distributors – issue simplified-Chinese Brand-Use Guidelines and collect signed acknowledgements; audit packaging and ads twice a year to avoid joint liability for deceptive use.

   
   

Bottom line China is swapping a quantity gate for a quality gate. The unwritten message is clear: “Genuine brands welcome; paper marks stay out.”

Don’t let the November 1, 2026 deadline catch you off guard—book a free 30-minute consulting with our bilingual IP team today. We’ll scan your existing portfolio, flag high-risk filings, and hand you a plain-English action plan so you enter the new law one step ahead of competitors and one lawsuit behind. Slots fill fast; reserve yours now. Move now—being one step ahead of your competitor means one pitfall avoided.