China’s Emerging “Section 337 Investigation”: Implications for Multinational Companies

On March 19, 2025, the State Council of China published the Regulations on the Handling of Foreign-Related Intellectual Property Disputes (“Regulations”), which were promulgated on March 13, 2025, and will take effect on May 1, 2025. While the Regulations address various aspects of foreign-related intellectual property (IP) disputes in China, Article 14 of the Regulations highlights the government’s focus on investigating IP violations in imported goods.

Although the Regulations do not introduce new rules, they reference existing provisions in China’s Foreign Trade Law, which was promulgated in 1994 and lastly modified in 2022. However, Article 14 suggests the potential emergence of a system similar to U.S. Section 337 investigations, which target unfair trade practices involving IP-infringing imports. This client alert examines how such a system could impact multinational companies (MNCs) involved in IP disputes in China.