Paolo Beconcini offers a thoughtful and practical perspective on building and managing relationships with Chinese counterfeit enforcement authorities.

His article highlights the critical role of trusted local private investigators and introduces a nuanced “Plan B” strategy—activating alternative enforcement channels when the primary agency declines to act.

*Paolo Beconcini originally published this article on his LinkedIn page on June 23, 2025. It is reprinted here in its entirety with his permission.

“朋友多了路好走” With many friends, the road is easier to walk.

How Relationship affects the enforcement of IP rights in China

Introduction

You may have come across the term 关系 (Guānxì). It translates to “relationship,” but in Chinese culture—especially in business—it signifies much more. In high-context cultures like China’s, building and maintaining strong personal connections often takes precedence over the transaction itself. Trust, which lies at the heart of any successful deal, is built through relationships.

Knowing someone, having a good rapport, or being introduced by a mutual contact can make all the difference—it can open doors, smooth negotiations, resolve misunderstandings, and reduce uncertainty. This is not about favoritism; it’s about cultural alignment. For foreigners doing business in China, understanding and embracing guānxì is not optional—it’s essential. It’s part of the toolkit that Western professionals must develop to navigate Chinese business environments effectively.

But what happens when guānxì intersects with the enforcement of legal rights? How does guānxì coexist with the rule of law?

China, Guangxi and the Rule of Law

In low-context, individualistic, and universalistic cultures—like that of the United States and much of the West—legal systems are designed to prioritize objectivity, fairness, and individual rights. We expect that legal disputes will be judged impartially, guided strictly by statutes and legal precedent, and free from external influence, including personal relationships or lobbying. Here, the rule of law stands above all else—it is the foundation of fair and predictable business practices.

In China, guānxì (关系) can influence the enforcement of legal rights—including intellectual property rights—in ways that may challenge the supremacy of the rule of law. While China has made notable progress in strengthening the role of law in judicial decision-making, certain aspects of enforcement remain subject to administrative discretion. In these areas, personal relationships can play a decisive role.

The Role of guānxì in Trademark Enforcement in China

In China, much of anti-counterfeiting enforcement is carried out through administrative or criminal raids rather than civil litigation. Typically, a right holder receives intelligence from a private investigator about an infringing operation and files a complaint with the local administrative authority or police bureau responsible for trademark enforcement.

However, these local enforcement bodies retain significant discretion in whether or not to pursue a case. If a complaint is accepted, enforcement officers may conduct raids, seize counterfeit goods, and in criminal cases, arrest and detain individuals involved. That said, it is not uncommon for local considerations—such as economic interests, political pressures, or personal relationships—to influence these discretionary decisions, leading to the denial of enforcement, raising serious concerns about fairness, and the broader integrity of IP protection in China.

Therefore, brand owners must strategically counterbalance local dynamics by leveraging their own guānxì. But how can this be done without raising compliance red flags?

For in-house trademark attorneys—especially those unfamiliar with the nuances of local enforcement—the line between relationship-building and compliance risk can be difficult to navigate. Engaging directly with local enforcement officials may expose them to ethical and regulatory challenges.

The most effective and compliant approach is to partner with experienced and law-abiding local investigators. These professionals have cultivated strong relationships over many years through consistent collaboration with enforcement agencies. They understand the landscape: who is cooperative and transparent, and who is not; which officials are likely to take interest in a case, and which are disengaged or resistant.

Choosing the right local partners can be the difference between success and failure.

A Personal Perspective

As both an enforcer and investigator, I’ve had the opportunity to work with numerous enforcement agencies across China. I’ve seen firsthand how complex and politically nuanced the administrative system can be. Navigating it effectively requires not just legal knowledge, but cultural fluency, patience, and most importantly—trusted relationships.

In many instances, I’ve successfully leveraged strong relationships to overcome impasses and obstacles in the enforcement of our clients’ rights. One of the most notable examples involved persuading an enforcement agency outside the jurisdiction of the infringer’s domicile to take on the case. This strategic move allowed us to avoid relying on the local agency, which might have been influenced by regional ties or reluctant to act. These types of cases are challenging to build—they require time, persistence, and trust—but with the right relationships in place, success is possible.

Another example occurred when we faced resistance from a local enforcement body unwilling to take action. Instead of dropping the case, we engaged a different department within the same agency—one with whom we had a proven track record from prior, unrelated cases. Their willingness to cooperate ultimately unblocked the enforcement process.

Conclusions

These are practical examples of how you can lawfully and transparently use the available legal tools—such as forum selection—and rely on established working relationships to overcome potential barriers to effective enforcement. When done ethically and strategically, leveraging guānxì doesn’t conflict with the rule of law in China; it enhances it by enabling the system to work as intended, even in complex or resistant environments.

Paolo Beconcini

Is the head of the China IP Team at Squire Patton Boggs and Lecturer in Law at USC Gould School of Law.

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