U.S. Trademark Registration Trends Amid China-U.S. Trade Tensions: Strategic Adjustments and Market Restructuring
Since the escalation of China-U.S. trade tensions in 2018, tariff barriers, technology restrictions, and supply chain restructuring have profoundly reshaped the globalization paths of enterprises in both countries. As the "first threshold" for brand internationalization, trademark registration data serves as a barometer for strategic business shifts. Drawing on public data from the United States Patent and Trademark Office (USPTO), this article analyzes the evolving trends and underlying logic of U.S. trademark registrations amid the intensifying geopolitical environment.
I. Data Insights: Fluctuations in Trademark Applications by Chinese Companies
Cyclical Decline and Structural Divergence
USPTO data reveals that from 2017 to 2020, the annual growth rate of U.S. trademark applications from Chinese applicants exceeded 30%, peaking in 2021 at approximately 76,000 filings. However, since 2022, this growth has slowed significantly, with a 15% year-over-year drop in 2023. This shift is closely linked to U.S.-China technological decoupling and the implementation of the Trademark Modernization Act of 2021, which intensified scrutiny of foreign application authenticity.
Industry Divergence:
Trademark applications in traditional strongholds such as consumer electronics and household goods have remained stable, while registrations in sensitive sectors like semiconductors and biopharmaceuticals have faced increasing resistance.
Entity Divergence:
Leading companies (e.g., Huawei, Xiaomi) continue to maintain application volumes through global expansion, whereas small and medium-sized enterprises (SMEs) have scaled back due to rising compliance costs.
The Rise of “Indirect Filing” Strategies
To mitigate policy risks, some Chinese companies are applying for U.S. trademarks via entities registered in third-party jurisdictions such as Hong Kong and Singapore. Notably, U.S. trademark applications filed by Hong Kong entities increased by 22% in 2023, reflecting this strategic pivot.
II. Policy Drivers: The “Weaponization” of Trademark Examination
In recent years, the U.S. has introduced several policies that raise the threshold for trademark registration. While these measures are framed as targeting “trademark squatting” and fraudulent filings, they often serve as veiled mechanisms for restricting companies from specific countries:
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Mandatory U.S. Attorney Representation:
Foreign applicants must now engage licensed U.S. attorneys, increasing both time and financial burdens for Chinese firms. -
Stricter Proof-of-Use Requirements:
Evidence of actual trademark use is now rigorously examined, particularly for Chinese cross-border e-commerce sellers, resulting in a surge of rejections due to insufficient documentation. -
National Security-Linked Reviews:
Trademarks related to critical technologies—such as AI and quantum computing—may be subjected to scrutiny by CFIUS (Committee on Foreign Investment in the United States).
These policies mark a shift in trademark registration from a purely commercial process to a geopolitical tool, prompting enterprises to reevaluate associated risks.
III. Corporate Responses: From Passive Compliance to Proactive Defense
Accelerated Localization Strategies
To minimize policy risks, some Chinese companies are acquiring U.S. brands, setting up local subsidiaries, or forming joint ventures to hold trademarks. For instance, a Chinese new energy vehicle maker acquired a regional U.S. brand to bypass direct registration hurdles.
“Asset-Light” Registration Driven by Cross-Border E-Commerce
Despite regulatory pressure, platforms like Amazon continue to require brand registration for sellers. This has sustained high trademark application volumes among SMEs, characterized by short cycles and low budgets, and has fostered a specialized cross-border IP service industry.
Defensive Registrations and Global Coordination
Leading firms are integrating U.S. trademarks into a broader international IP strategy, registering in the EU, Southeast Asia, and other regions to build a decentralized IP protection network, thereby diluting reliance on any single market.
IV. Future Outlook: Rising Compliance Costs and Market Diversification
Short-Term Pain, Long-Term Game
With ongoing U.S.-China tech rivalry, trademark reviews may increasingly tie into export controls and entity list mechanisms. Chinese enterprises should prepare for higher compliance costs and longer processing timelines.
Emerging Markets as Alternative Opportunities
Trademark registration demand is surging in RCEP member countries and Belt and Road regions. As a result, some companies are reallocating resources to Southeast Asia and the Middle East, adopting a “U.S. + Alternative Market” dual-track strategy.
Tech-Enabled Compliance Innovation
Technologies like blockchain for evidence storage and AI-powered search tools will see broader adoption in trademark filings, improving reliability of documentation and procedural efficiency while reducing the impact of subjective examiner bias.
Conclusion
Trademark registration trends mirror the resilience and strategic adaptability of businesses amid China-U.S. economic friction. Whether through indirect applications or localization tactics, the core objective remains the same: to rebuild defensible brand barriers in an era of global uncertainty. Moving forward, trademark strategy will evolve beyond legal formality—it will become a vital component of corporate geopolitical risk management.
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