Chinese Trademark Market Overview：Trends, Risks & Opportunities for Foreign Brands

China’s trademark system has evolved into one of the world’s most competitive markets, with over 50 million active registrations. For foreign brands, understanding the first-to-file rule — and the growing risk of trademark squatting — is essential before entering China. This article breaks down the current landscape, trends and real cases to help you evaluate when and why to register.

⏱️ Reading time: 9 minutes

📅 Updated: October 12, 2025

✍️ Author: Clark.Ma

Self-search Guide

professional search

CN TM classification

Required documents

Online submission

Registration price

Success Rates & Resource Challenges
The Standardized Process
Costs & Timeline
First-to-File System & Trademark Squatting
Choosing the Right Agent
Strategic Conclusion

Moderate-to-Low Success Rates Amid Scarcer Resources

60-65%

Average approval rate for trademark applications

1 in 3

Applications face rejection

100%

Essential to conduct pre-filing searches

Based on CNIPA’s annual reports and industry data, only about 60%–65% of trademark applications are approved on average. This means more than one in three applications faces rejection, making careful pre-filing searches and strategic planning essential components of a successful registration strategy.

📊 Understanding the Statistics

The approval rate varies significantly by industry and trademark type:

Technology sectors: Often face higher scrutiny due to competitive landscapes
Consumer goods: Moderate approval rates but high incidence of conflicts
Pharmaceuticals: Lower approval rates due to strict regulatory requirements

Highly Standardized Process, Overestimated Expertise Barrier

Formal Examination

Initial review of application completeness and formal requirements:

Document verification
Classification accuracy
Fee payment confirmation

Substantive Review

Examination of trademark distinctiveness and potential conflicts:

Similarity to existing marks
Distinctiveness assessment
Legal compliance check

Publication & Certification

Final stages of the registration process:

Publication in Trademark Gazette
Opposition period (3 months)
Registration certificate issuance

China’s trademark registration follows a highly structured process from formal examination to substantive review, publication, and final certification. The real challenges lie in:

Expertise Spectrum

Well-Prepared Applicant: 80%

Specialist Knowledge: 20%

Most businesses only need the foundational 80%

Navigating the Expertise Barrier

If the expertise of a top trademark lawyer is rated at “100,” a well-prepared applicant can realistically reach “80.” The critical tasks within this 80% include:

Selecting the right classes among the 45 available categories
Identifying appropriate sub-classes for comprehensive protection
Conducting preliminary similarity assessments
Preparing basic application documentation

The remaining “20” requires deeper specialization in areas like complex opposition cases or litigation strategy, which is often unnecessary for most standard business applications.

Costs & Timeline: Accessible but Lengthy Process

⏱️

8 Months

Average registration timeline

💰

$200-500

Typical agent fees for foreign applications

🌍

Lower Cost

Compared to other jurisdictions

China’s trademark registration costs are relatively low compared with other major jurisdictions. The full registration cycle usually takes about 8 months, while international agencies typically charge only USD 200–500 for handling a foreign company’s application in China.

💡 Understanding the Cost Structure

This combination of a lengthy process paired with modest fees illustrates that trademark registration in China is more about navigating standardized procedures than requiring highly specialized legal expertise for most cases. The accessibility of the process means that trademark registration in China is not as intimidating as many foreign businesses assume.

Cost Component	Typical Range	Notes
Official CNIPA Fees	$40-45	per class
Agent Service Fees	$200-500	Data source: Public quotes from multiple online service agencies
Translation & Documentation	$100-250	Required for foreign applicants
Priority Claim (if applicable)	$120-180	For applications within 6 months of home filing

The “First-to-File” Principle & Trademark Squatting

Common Squatting Scenarios

Distributor Registration

Local partners register the foreign brand in their own name

Professional Squatters

Individuals or companies systematically register popular foreign marks

Competitive Blocking

Competitors register similar marks to create barriers to entry

Understanding First-to-File

China operates on a “first-to-file” system where trademark rights are granted to whoever files first—not to who uses the mark first. This fundamental difference from “first-to-use” systems creates significant challenges for foreign businesses.

Opportunistic filings are common in this environment. Many foreign brands discover too late that their trademarks have already been registered by:

Local partners or distributors seeking leverage in business relationships
Professional squatters who systematically register valuable foreign marks
Former employees with knowledge of international expansion plans

Once a trademark is registered by another party, the original brand owner faces limited options, typically requiring either:

Costly legal battles to prove bad faith registration
Financial negotiations to buy back their own brand name
Rebranding for the Chinese market

🚫 Preventive Measures Are Essential

The most effective strategy against trademark squatting is proactive registration before market entry. Additional protective measures include:

Registering trademarks in both English and Chinese characters
Securing relevant domain names (.cn, .com.cn)
Filing defensive registrations in related product classes
Implementing confidentiality agreements with local partners

Thousands of Agents, Uneven Service Quality

40,000+

Trademark agencies officially registered with CNIPA

The Chinese trademark agency landscape is characterized by intense competition among over 40,000 officially registered agencies. While this creates price competition beneficial to applicants, it also leads to significant variations in service quality.

Agency Type

Typical Characteristics

Best For

Budget Agencies

Competitive pricing
Basic service offerings
Limited international experience

Simple applications with straightforward classifications

Mid-Range Specialists

Reasonable fees
Industry-specific expertise
Basic international capability

Most standard business applications

International Experts

Higher fees
Bilingual capability
Cross-border experience

Complex cases, opposition matters, and strategic portfolio management

Selecting the Right Partner

Choosing a reliable agency—one that understands both local regulations and international business standards—is often the decisive factor in achieving a smooth registration. Key selection criteria should include:

Industry Experience

Familiarity with your specific sector and its trademark challenges

Communication Ability

Clear, responsive communication in your preferred language

Strategic Approach

Willingness to provide strategic advice beyond basic filing

Transparent Pricing

Clear fee structure without hidden costs

Strategic Conclusion: Navigating China’s Trademark System

Key Takeaways for Foreign Businesses

⏰

Act Early

File trademarks before market entry to prevent squatting

📋

Prepare Thoroughly

Conduct comprehensive searches and strategic planning

🤝

Choose Wisely

Select agents with both local knowledge and international perspective

“Registering a trademark in China is a strategic task. The process itself is standardized and accessible, but success depends on acting early, anticipating risks, and partnering with the right professional support. For foreign businesses, the golden rule remains: secure your trademark in China before you enter the market.”

While China’s trademark system presents challenges—from moderate success rates to the risks of squatting—it remains navigable for well-prepared businesses. The standardized nature of the process means that with proper guidance and strategic planning, foreign companies can successfully protect their intellectual property in one of the world’s most important markets.

🚨 Final Recommendation

Begin the trademark registration process at least 12 months before planned market entry to account for the 8-month processing time and potential obstacles. Consider filing defensive trademarks in related classes and consult with experienced professionals who can provide strategic guidance tailored to your specific industry and business model.

Ready to Protect Your Brand in China?

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Start Your Trademark Strategy Today

Or download our: “Pre-Filing Checklist for Foreign Businesses”

CTMAA

China Trademark Agency Alliance

CTMAA is more than just a China tradmark registration service provider; we are your strategic partner for entering and establishing yourself in the Chinese market. We are dedicated to clearing obstacles, using our professionalism, experience, and integrity to safeguard your brand in China.

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Clark MA

About Author

Clark Ma is a leading expert in Chinese trademark practice. He is an expert in the talent pool of the China Trademark Association, a member of the World Intellectual Property Organization’s China campus activities, and has been invited multiple times to interpret trademark cases. With 15 years of deep involvement in the IP field and over 1,000 cases of trademark services experience, he possesses solid practical experience and is familiar with review rules and risk avoidance strategies in various fields. He is also passionate about writing and sharing insights in the field of intellectual property.

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