"Sweet Money from the US" Chinese Nationals File Thousands of Patents Using US Budget

Many Sensitive Strategic Industries Including Semiconductors and Bio
Debate Over Renewal of US-China Science and Technology Agreement

Researchers in China have obtained thousands of patents over the past 14 years with funding from the U.S. government. Among these institutions are sensitive strategic industries such as NASA, which is legally prohibited from cooperating with China, as well as semiconductor and biotechnology sectors, suggesting significant repercussions.

According to major foreign media on the 29th (local time), the U.S. Patent and Trademark Office (USPTO) approved 1,020 patents from 2010 to the first quarter of this year that involved at least one researcher residing in China, based on funding from U.S. government agencies. In this regard, the U.S. House China Special Committee requested the patent authorities in June to investigate whether U.S. funding has served as a breakthrough for China’s acquisition of advanced technology.

[Image source=AP Yonhap News]

It was confirmed that the 1,020 patents were developed with funding from various U.S. government agencies. The Department of Health and Human Services provided funding for 356 patents, the highest among government agencies. The Department of Energy funded 175 patents, and the Department of Defense supported 92 patent applications. NASA, which is legally prohibited from cooperating with the Chinese government and companies, also contributed to the acquisition of 4 patents.

Republican U.S. Representative John Moolenaar pointed out, "American taxpayers have unknowingly funded patent applications for over 1,000 Chinese companies," adding, "It is surprising that the Department of Defense accounts for about 100 of these." Foreign media explained, "These patents include fields such as semiconductors, molecular chemistry, chemical engineering, nanotechnology, and medical technology," and noted that "197 patents in pharmaceuticals and 154 patents in biotechnology, which are strategic industries for both the U.S. and China, were issued respectively."

Previously, the U.S. and China signed the Science and Technology Agreement (STA) when diplomatic relations were established in 1979, renewing it every five years. Covering basic research from atmospheric and agricultural sciences to physics and chemistry, it opened avenues for human and material exchanges between the two countries and served as a catalyst for expanding national diplomatic relations into the private sector. However, some voices have expressed concerns that the STA could lead to China’s military strengthening and infringement of U.S. intellectual property rights. Last year, the U.S. House China Special Committee requested U.S. Secretary of State Antony Blinken to terminate the agreement.

A U.S. State Department spokesperson stated, "The United States is committed to advancing and protecting its interests in the field of science and technology," expressing a firm stance on concerns about technology leakage. Liu Fengyu, spokesperson for the Chinese Embassy in the U.S., emphasized, "We hope some U.S. officials will abandon Cold War-era thinking," and stressed that "(science and technology) is an open business."

Foreign media noted, "China has recently surpassed the U.S. to become the world’s largest patent applicant," and pointed out concerns that if the STA agreement is broken, academic and trade cooperation will be hindered, and the U.S. may be unable to learn from China’s advanced technologies. According to a report by the United Nations World Intellectual Property Organization (WIPO) last month, China filed 38,000 generative artificial intelligence (AI) patents from 2014 to 2023, ranking first in the world and far ahead of the U.S. with 6,276 patents.