U.S. Funding Fuels Over 1,000 Patents for China-Based Inventors: A National Security Oversight?

In a revelation that could spark a major policy shift, data from the U.S. Patent and Trademark Office has shown that over 1,000 patents for China-based inventors were funded, at least in part, by U.S. government agencies since 2010. Among these, some patents belong to sensitive fields such as biotechnology and semiconductors, raising concerns about the implications of American taxpayer dollars inadvertently bolstering China’s strategic industries.

The findings, reviewed by Reuters have intensified scrutiny over the U.S.-China Science and Technology Agreement—a cooperation pact signed in 1979 that has facilitated academic and commercial exchanges between the two nations. Critics argue that this agreement disproportionately benefits China, now seen as the United States’ principal geopolitical rival.

Based on Reuters findings, the U.S. Patent Office reported that, from 2010 through early 2024, 1,020 patents were granted that involved U.S. funding and at least one China-residing inventor. These include 197 patents in pharmaceuticals and 154 in biotechnology—fields critical to both U.S. and Chinese national interests. Funding sources included the Department of Defense, Department of Energy, NASA, and the Department of Health and Human Services (HHS), which alone accounted for 356 patents. Notably, NASA, under U.S. law, is prohibited from collaborating with China or Chinese entities, making the findings all the more alarming.

Calls for a Policy Overhaul

The revelation comes at a sensitive time as the U.S. considers renewing the Science and Technology Agreement. With its latest extension ending recently, some lawmakers are pushing to either cancel or renegotiate the terms, citing the risk that the agreement poses to U.S. intellectual property and national security.

The data, submitted to the committee on August 14, did not detail specific projects or patents, nor did it clarify if the U.S. entities or individuals hold partial ownership of these patents. However, it included technological advancements in areas such as semiconductors, molecular chemistry, polymers, chemical engineering, nanotechnology, and medical technology. Despite growing concerns about national security, the patenting activity from U.S.-funded Chinese inventors peaked in 2019 and has been declining, with just 16 patents recorded in the first quarter of 2024.

Rising Concerns Over China’s Technological Dominance

The U.S. patent revelation aligns with broader concerns about China’s rapid strides in high-tech fields, particularly generative artificial intelligence (GenAI). A recent report by the World Intellectual Property Organization (WIPO) highlighted China’s dominance in GenAI patents, with over 38,000 inventions filed between 2014 and 2023—six times more than the United States. GenAI, a transformative technology powering applications from chatbots to autonomous systems, underscores China’s leading position in emerging technologies that are set to define the future of global industry and innovation.

While some proponents argue that continued cooperation under the Science and Technology Agreement could allow the U.S. to gain insights into China’s advancements, others caution that such benefits come at a steep cost. The agreement’s critics, alarmed by China’s increasing military power and alleged intellectual property theft, view the current arrangement as untenable.

What’s Next?

As the debate over the U.S.-China Science and Technology Agreement intensifies, policymakers face a critical decision. Renewing the agreement as it stands could mean continued U.S. financial support for Chinese technological gains, while cancellation could disrupt longstanding academic and commercial collaborations. Either way, the revelations of U.S.-funded patents for China-based inventors will likely fuel calls for tighter controls and increased scrutiny of how American research dollars are used.

With global power dynamics shifting rapidly, the stakes are high. As China continues to outpace the U.S. in patent filings and technological innovations, the U.S. must reassess its strategies to maintain its competitive edge in the ever-evolving landscape of global innovation.